A company maintains its non-current assets at cost. Depreciation provision accounts for each asset are kept.

At 31 December 2015 the position was as follows:

The following additions were made during the financial year ended 31 December 2016:
Machinery £16,000, office furniture £460.
A machine bought in 2008 for £1,600 was sold for £360 during the year.
The rates of depreciation are:
Machinery 20 per cent, office furniture 10 per cent, using the straight line basis, calculated on the assets in existence at the end of each financial year irrespective of the date of purchase.

You are required to show:

The asset and depreciation accounts for the year ended 31 December 2016 and the statement of financial position entries at that date.

Transcribed Image Text:

Machinery Office furniture Total cost to date Total depreciation to date 94,500 3,200 28,350 1,280