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Please answer the following question completely in details showing steps and equation and a clear and neat handwriting if it's done by hand. Please only
Please answer the following question completely in details showing steps and equation and a clear and neat handwriting if it's done by hand.
Please only answer if you're 100% sure of the right answer and thanks.
JobShop Ltd. a general purpose metal-works, commenced trading in January 2014 and operates its financial year in line with the calendar year. The company uses general-purpose equipment to manufacture a wide range of metal products to customer specification. By the 31st December 2014 the fixed assets of JobShop Ltd. comprised .Plant and machinery 320,000 . Motor Vehicles . Fixtures & Fittings . IT system 185,000 120,000 100,000 The company is considering how it might calculate depreciation on these assets for the financial year just ended. Management is anxious to ensure the accounts reflect a reasonable valuation of its fixed assets at each year end. Required: (A) Write a report to the Accountant of JobShop suggesting a system of depreciation for each asset which might reflect fair valuation. (60 Marks) (B) Using your recommended methodology from above, show the JobShop Balance Sheet entries as at 31st December 2014 for the fixed (40 Marks) assets. (Assume all the fixed assets were purchased during 2014)Step by Step Solution
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