Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Petronas owns a small manufacturing business. Her depreciation policy is as follows: Non-current asset Plant and machinery Depreciation policy 20 % per annum reducing
Petronas owns a small manufacturing business. Her depreciation policy is as follows: Non-current asset Plant and machinery Depreciation policy 20 % per annum reducing balance method A full year's depreciation is charged in the year of purchase but none in the year of sale. The following information in respect of plant and machinery has been extracted from the books of account for the year ended 31 July 2022. Date Details 1 August 2021 Cost, Rs 26,800; Provision for Depreciation, Rs 12,200. 1 January 2022 Purchased new machinery, cost Rs 4,200, which was settled with a cheque. 31 July 2022 A machinery that had originally cost Rs 2,500 in September 2018 has been sold for Rs 1,750. Machinery with an original cost of Rs 850 and a net book value of Rs 60 was scrapped with no proceeds.
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