Question
A company maintains its fixed assets at cost. Depreciation provision account is prepared using 12% per annum on straight line method for machinery and 15
A company maintains its fixed assets at cost. Depreciation provision account is prepared using 12% per annum on straight line method for machinery and 15 % for fixtures, using reducing balance method for each proportion of the year. The following transactions took place during the year:
19901st January,Bought machinery940,000,Fixtures 200,000.
1st January,Fixtures600,000
19911st October,Bought machinery920,000
1st DecemberSold the fixtures bought on 1st January 1990 for 550,000 and the machinery bought on 1st January 1990 for 350,000.
You are required to prepare:
i. The machinery account
ii. The Fixtures account
iii. The provision for depreciation
iv. The disposal account
v. The balance sheet extract.
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