A company's policy as regards depreciation of its plant and machinery is to charge depreciation at...
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A company's policy as regards depreciation of its plant and machinery is to charge depreciation at 20 per cent per year on cost, with proportional depreciation for items purchased or sold during a year. The company's plant and machinery at cost account for the year ended 30 September 20X3 is shown below: PLANT AND MACHINERY - COST $ 20X2 1 Oct Balance (all plant purchased after 20W9) 20X3 1 Apr Cash-purchase of plant 200,000 50,000 250,000 20X3 30 Jun Transfer disposal account 30 Sep Balance $ 40,000 210,000 250,000 What should be the depreciation charge for plant and machinery (excluding any profit or loss on the disposal) for the year ended 30 September 20X3? A company's policy as regards depreciation of its plant and machinery is to charge depreciation at 20 per cent per year on cost, with proportional depreciation for items purchased or sold during a year. The company's plant and machinery at cost account for the year ended 30 September 20X3 is shown below: PLANT AND MACHINERY - COST $ 20X2 1 Oct Balance (all plant purchased after 20W9) 20X3 1 Apr Cash-purchase of plant 200,000 50,000 250,000 20X3 30 Jun Transfer disposal account 30 Sep Balance $ 40,000 210,000 250,000 What should be the depreciation charge for plant and machinery (excluding any profit or loss on the disposal) for the year ended 30 September 20X3?
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20X3 30 Jun Transfer disposal account 40000 200000 30 Sep Balance 21000... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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