A business has a financial year end of 31 December. An equipment is bought for $40,000 on 1 January 2020. It is to be depreciated at the rate of 30% using the Reducing Balance Method.

You are required to show records for the first three (3) years for the following:

1. Equipment Account

(2 marks)

2. Accumulated Provision for Depreciation: Equipment

(9 marks)

3. Profit and Loss Account

(6 marks)

4. Extract from the Statement of Profit or Loss for the years ending 31 December..

(3 marks)

A business has a financial year end of 31 December. An equipment is bought for $40,000 on 1 January 2020. It is to be depreciated at the rate of 30% using the Reducing Balance Method.

You are required to show records for the first three (3) years for the following:

1. Equipment Account

(2 marks)

2. Accumulated Provision for Depreciation: Equipment

(9 marks)

3. Profit and Loss Account

(6 marks)

4. Extract from the Statement of Profit or Loss for the years ending 31 December..

(3 marks)