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

At 31 December 2015 the position was as follows:

The following transactions were made in the year ended 31 December 2016:

(a) Purchased - machinery £2,480 and office furniture £320

(b) Sold machinery which had cost £2,800 in 2008 for £800 Depreciation is charged, on a straight line basis, at 10 per cent on machinery and at 5 per cent on office furniture on the basis of assets in use at the end of the year irrespective of the date of purchase.

Required:
Show the asset and accumulated provision for depreciation accounts for the year 31 December 2016 and the relevant statement of financial position entries at that date.

Transcribed Image Text:

Machinery Office furniture Total cost to date Total depreciation to date 52,950 25,670 2,860 1,490