ACCA F3 Depreciation, Reducing balance method, Example 2
Reader Interactions
Comments
Leave a Reply
You must be logged in to post a comment.
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
20% off ACCA & CIMA Books
OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>
sir if the question says original cost =$20000, 10% straight line depreciation then we will simply multiply the original cost with the % to get the depreciation expense for the year right?
Correct – have you watched the free lectures on this?
Sir, great job with the lectures. I’m benefiting from them enormously.
I do however have a problem with your very last illustration on the 10% straight line depreciation where you used the approach of 10% x cost/20000 = 2000 in determining the depreciation expense. I was of the opinion it was going to be just 10% of the original cost (which is 2000). Please clarify?
But if you look again, the original cost is 20,000, and so the depreciation is 10% x 20,000 = 2,000 each year.