1. A business has just bought a machine for K8000. It will be kept in use for four years, when it will be disposed of for an estimated amount of K500. Calculate the amount of depreciation using the straight-line method and reducing balance method showing the depreciation for each year in both methods up to the time the machine is expected to be disposed at the said amount. For the reducing balance method, a percentage figure of 50 per cent will be used.
2. On 1 January 2019, the business purchases K10, 000 of inventory by cheque. Enter this transaction into their respective accounts by showing the account to be debited and the account to be credited.

Answer rating: 100% (QA)

StraightLine Method 1 Calculate the total cost of the machine K8000 purchase price K500 disposal val... View the full answer