K Gillow prepares his accounts annually to 30 June. He depreciates all his machinery at a rate

Question:

K Gillow prepares his accounts annually to 30 June. He depreciates all his machinery at a rate of 30 per cent per annum on the reducing balance method. Details of the machines and the dates of purchase are as follows:

Machine type Date of purchase Cost-(£)

‘M’

1 August 20-5 3,000

‘D’

1 January 20-6 4,000

‘W’

1 June 20-6 5,000

‘B’

1 March 20-7 6,000 In the year of purchase depreciation is to be calculated according to the number of months owned.

You are required to show your calculations of depreciation, for each machine, for each year, from the year of purchase to the year ending 30 June 20-8.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: