A machine cost 40,000 on 1 January 20X7. The reducing balance depreciation method is used at 25%
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A machine cost £40,000 on 1 January 20X7. The reducing balance depreciation method is used at 25% per annum. Year end is 31 December. During 20X9, it was decided that a straight line method would be more appropriate. At that time, the remaining useful economic life of the machine was seven years with a residual value of £1,500.
Required:
The accumulated provision for depreciation account for the years 20X7 to 20X9 inclusive together with the relevant balance sheet extract on 31 December in each of those years.
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Related Book For
Frank Woods Business Accounting Volume 1
ISBN: 9780273681496
10th Edition
Authors: Frank Wood, Alan Sangster
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