1. Alice Burke prepares her financial statements on 31 December each year and maintains a Plant and Equipment register at cost. She provides depreciation for the full year on fixed assets that are in use at the end of the year, and none in the year of disposal.
2. On 31 December 20X3 the plant account balance was £180,000 and the balance on the accumulated provision for depreciation account was £70,000. Depreciation is provided on the reducing balance method at 20%.
3. Early in 20x6, an item of plant which had cost £20,000 on 1 March 20X4 was sold for £14,000 At the end of 20X6, it was decided that for that and all succeeding years the straight-line method of calculating depreciation should be used. It was assumed that all the plants would be sold at the end of 20X9 for approximately £30,000 
4. Required
5. 
   
6. Prepare the ledger accounts recording all of the above.

Answer rating: 100% (QA)

Alicee Bruke Accumulated Provision for Depreciation Ledger Account 1Jan2014 to 31Dec2019 Vch No 1 1 ... View the full answer