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Afia McBrown Limited operates a Microfinance business. The company has a financial year end of 31 Dec. 2020. As a result of Dumsor, the company
Afia McBrown Limited operates a Microfinance business. The company has a financial year end of 31 Dec. 2020. As a result of "Dumsor, the company bought a generator on October 01, 2020 for smooth operations of business. The generator cost GHC75,200. It is estimated that the generator will last for five (5) years in the company after which it will be disposed at GHS1,200 It is the policy of the company to depreciates every non-current asset at the rate 20% per annum. The company also pro-rata any non-current asset bought asset and its associated depreciation bought during the year. Required: In a table form, calculate the yearly depreciation chargeable by the company and show the accumulated depreciation at the end of the 5th year using: a) the straight-line method b) the reducing balance method of depreciations
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