The following details regarding Machines are provided: Machine Date of purchase Cost Date of sale Cash Proceeds
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Question:
The following details regarding Machines are provided:
| Machine | Date of purchase | Cost | Date of sale | Cash Proceeds |
|---|---|---|---|---|
| $ | $ | |||
| X | 05/04/2017 | 1,000,000 | 02/06/2020 | 450,000 |
| Y | 01/01/2019 | 2,000,000 |
The policy of the company is to depreciate its PP&E at 10% on cost. Depreciation is charged in full in the year of purchase with no depreciation charged during the year of disposal.
Required:
For the year ended 31st December 2020 prepare:
- Machinery account
- Accumulated depreciation account
- Machinery disposal a/c
- SPOL Extract
- SFP Extract
Expert Answer:
Machinery Accoun t Debit Credit Cash 2017 1000000 Depreciation 100000 bcd 900000 bbd2018 900000 Depr... View the full answer
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