A computer system is purchased for 5,400 on 1 Jan 2016. Installation costs amount to 400. Running
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A computer system is purchased for £5,400 on 1 Jan 2016. Installation costs amount to £400.
Running costs for the year are estimated to be £600. Depreciation is to be provided on the system using reducing balance at a rate of 20%. A full year’s depreciation is provided in both year of purchase and year of sale. On 26 April 2017, the system is sold for £3,250.
Produce an asset disposal account to record the sale of the asset. The financial year of the business ends on 31 December.
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Depreciation in year 2016 5800 20 1160 Deprec...View the full answer
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Related Book For 
Frank Woods Business Accounting Basics
ISBN: 9780273725008
1st Edition
Authors: Frank Wood, Mr David Horner
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