Paul's Pottery Trial Balance For year ending 30 June 2017 DR CR Furniture 60 000 11 000 Accumulated Depreciation of Furniture Motor Vehicle 50 000 Accumulated Depreciation of Motor Vehicle 20 000 Fixtures and Fittings 30 000 3 000 Accumulated Depreciation of Fixtures and Fittings Machinery 140 000 50 000 Accumulated Depreciation of Machinery Office equipment 60 000 6 000 Accumulated Depreciation of Office equipment TRANSACTIONS a) Calculate the depreciation for the assets above for 2017 1. The furniture is depreciated using the straight line method and has a residual value of $5 000 and an estimated useful life of 5 years. 2. The motor vehicle is depreciated at 20% of cost per annum (straight line). 3. The fixtures and fittings are depreciated at 10% per annum using the diminishing balance method. 4. The machinery is depreciated using the production units method. It has a useful life of 500 000 machine hours and a residual value of $20 000. During the accounting period the machinery was used for 50 000 hours. 5. A new telephone system was purchased on 1 March for $20 000 this has been recorded as Office Equipment. Office equipment is depreciated using the reducing balance method at 15% p.a