Question21.16A

21.16A A company maintains its non-current assets at cost. An accumulated provision for deprecia- tion account is used for each type of asset. Machinery is to be depreciated at the rate of 15 per cent per annum, and fixtures at the rate of 5 per cent per annum, 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 following transactions in assets have taken place: 2019 1 January Bought machinery 2,800, fixtures 290 1 July Bought fixtures 620 2020 1 October Bought machinery 3,500 1 December Bought fixtures 130 The financial year end of the business is 31 December. You are to show: (a) The machinery account. (b) The fixtures account. (c) The two separate accumulated provision for depreciation accounts. (d) The non-current assets section of the balance sheet at the end of each year, for the years ended 31 December 2019 and 2020