Question
QLR Ltd has two fixed assets : machinery and fixtures The company depreciates the machinery and fixtures at the rate of 25% per annum and
QLR Ltd has two fixed assets : machinery and fixtures The company depreciates the machinery and fixtures at the rate of 25% per annum and 20% per annum respectively using the reducing balance method. Depreciation is to be calculated on assets in existence at the end of each year, giving a full year's depreciation even though the asset was bought part of the way through the year. The financial year end of the business is 31 December
The following transactions in assets have taken place 2016 1 January Bought machinery $4.000 1 January Bought fixtures $900
2017 1 March. Bought machinery $5.200 30 April. Bought fixtures $240
REQUIRED: (a) Machinery account (b) Fixtures account (C) Provision for depreciation account for machinery (d) Provision for depreciation account for fixtures (E) Balance sheets extracts as at 31 December of 2016 and 2017
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