Question
ecember 2021. 21.27A A company maintains its non-current assets at cost. Accumulated provision for deprecia- tion accounts are kept for each class of asset.
ecember 2021. 21.27A A company maintains its non-current assets at cost. Accumulated provision for deprecia- tion accounts are kept for each class of asset. At 31 December 2018 the position was as follows: Machinery Office furniture E Total cost to date Total depreciation to date 52,950 2,860 25,670 1,490 The following transactions were made in the year ended 31 December 2019: (a) Purchased - machinery 2,480 and office furniture 320 (b) Sold machinery which had cost 2,800 in 2015 for 800 Depreciation is charged, on a straight line basis, at 10 per cent on machinery and at 5 per cent on office furniture on the basis of assets in use at the end of the year irrespective of the date of purchase. Required: Show the asset and accumulated provision for depreciation accounts for the year to 31 December 2019 and the relevant balance sheet extracts at that date.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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