[aorkhan]

thank you very much sir

[aorkhan]

Thank you very much sir

[aorkhan]

question is from BPP ACCA F3 Kit 2016-2017, question number is (7.10)

[aorkhan]

I recopied the question

The plant and machinery at cost account of a business for the year ended 30 June 20X4
was as follows:
PLANT AND MACHINERY – COST

(DR)
20X3
1 Jul Balance 240,000
20X4
1 Jan Cash – purchase of plant 160,000
————
400,000

(CR)

2003
30 Sep Transfer disposal account 60,000

20X4
30 Jun Balance 340,000
————
400,000

The company’s policy is to charge depreciation at 20% per year on the reducing balance basis, with
Proportionate depreciation in the years of purchase and disposal.
What should be the depreciation charge for the year ended 30 June 20X4?
A. $68,000
B. $64,000
C. $61,000
D. $55,000

[aorkhan]

Thank you very much

[Author]

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