ACCA FA · Guided practice (Show me how)
Chapter 6: Depreciation
Imran - reducing-balance depreciation
Imran has a year end of 31 December each year.
On 1 July 2013 he purchased a machine for $20,000.
His depreciation policy is to charge 30% reducing balance, time-apportioned from the date of purchase.
(a) and (b) The method, and three periods of it
State the figure to which the reducing balance percentage is applied each year. Calculate the depreciation charge on Imran's machine for each of the years ended 31 December 2013, 2014 and 2015, and its carrying value at the end of each of those years.
(c) The statement of financial position extracts
Show the accumulated depreciation that would appear in the statement of financial position at the end of each of the three accounting periods.
Opening this exercise…