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required: compute depreciation expense for december 31, 2005, 2006 and record adjusting entries by using straight line method and diminishing balance method Q-4 July 01
required: compute depreciation expense for december 31, 2005, 2006 and record adjusting entries by using straight line method and diminishing balance method
Q-4 July 01 2005, ABC company Purchased a plant of list price Rs.400,000 availed a trade discount of 10%, cash discount 2/10,n/30 and paid the following expenses: Installation expense Rs.10,000 Freight in 2000 Testing charges 3000 Insurance in transit 5000 Foundation charges 1000 Custom & import duty 500 Fire insurance 500 Damages charges 400 Estimated ife ten years residual value is zero. Cash discount availed Q-5 July 01 2005, ABC company Purchased a plant of list price Rs.500,000 ,ava trade discount of 5%, cash discount 10/30,n/90 and paid the following expenses: Installation expense Rs. 5,000 Freight in 1500 Testing charges 200 Insurance in transit 4000 Foundation charges 3000 Custom & import duty 700 Fire insurance 600 Damages charges 800 Estimated life ten years residual value is zero. Settlement is made on Sep 15, 20
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