Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

we have to make: machine account accumulated depreciation account profit and loss account balance sheet Contractors Ltd was formed on 1 April 2016 and the

image text in transcribed

image text in transcribed

we have to make: machine account accumulated depreciation account profit and loss account balance sheet

Contractors Ltd was formed on 1 April 2016 and the following purchases and sales of machinery were made during the first 3 years of operations. Each machine was estimated to last 10 years and to have a residual value of $9,000 of its cost price. Depreciation was by equal instalments, and it is company policy to charge depreciation for every month an asset is owned. Assuming the year end date of Contractors Ltd is March, 31, you are required to show: (i) the monthly charge of each machine; (ii) the workings in the total depreciation on machineries for each of the years 2017 , 2018 , and 2019; (iii) the Machine Account; (iv) the Accumulated Depreciation Account; (v) the profit or loss on the sale of Machine 3 in 2018 and (vi) the Balance Sheet extracts of the Fixed Assets on March 31, 2019. (i) the monthly charge of each machine; (ii) the workings in the total depreciation on machineries for each of the years 2017 , 2018 , and 2019; (iii) the Machine Account; (iv) the Accumulated Depreciation Account; (v) the profit or loss on the sale of Machine 3 in 2018 and (vi) the Balance Sheet extracts of the Fixed Assets on March 31, 2019

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

More Books

Students also viewed these Accounting questions

Question

List behaviors to improve effective leadership in meetings

Answered: 1 week ago