Question
1. In a business with financial years ended 31 December. A machine is bought for P200,000 on 1 January Year 1. The estimated useful life
1. In a business with financial years ended 31 December. A machine is bought for P200,000 on 1 January Year 1. The estimated useful life is 8 years. In Year 6, the machinery has been sold for P18,500. Show the accounting entries for each year up to Year 6. You are to show: (a) Machinery account (b) Provision for depreciation (c) Disposal account (d) Profit and loss account and Balance sheet for each year up to 31 Dec Year 6.
2. An company bought a generator set of P150,000. Other expenses including installation amount to P5,000. The generator is set to have a 15 years with the salvage value at the end of life of P4,000. Determine the depreciation charge during the 12th year and the book value at the end of the 10th years by (a) SYD method, (b) straight-line method, (c) declining balance method and (d) sinking fund method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started