Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

>> The following information relate to the non-current assets of Members Company Itd Oo la January 2014 Members Company Ltd. purchased two machines at a

image text in transcribed

>> The following information relate to the non-current assets of Members Company Itd Oo la January 2014 Members Company Ltd. purchased two machines at a cost price of GHC150,000 each paying by cheque On lut July 2018 Member Company id purchased machinery at a cost price of One120,000, on credit from BD Machinery Ltd w on 30th June 2020, one of the machines purchased in January was sold for GH440,600 The disposal receipt was paid into the bank account i) Another machine was purchased for GH180,000 on 19 October, 2020 10 replace the disposal in June, 2020 ) Machinery is depreciated at 20% per annum using the straight-line method, the rate being charged for each proportion of the year the machinery is owned No allowance is made for any residual value. Required: Prepare the following ledger accounts of Members Company Ltd for the year ended Mist December (2018-2021): 1) Machinery it) Accumulated Depreciation of Machinery iii) Disposal of Motor Vehicles (10 marks) b) State and briefly explain any four (4) causes of depreciation charge per year. (6 marks) Total: 16 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-15

Authors: Jeffrey Slater

7th Edition

0130954888, 978-0130954886

More Books

Students also viewed these Accounting questions