[Rahul]

Treat the figures in this sequence Cost/Accumulated Depreciation/Net Book Value

Opening as at 1 October 2002 860,000 / 397,000 / 463,000

Disposals during the year (80,000) / (43,000) / (37,000)

Additions during the year 180,000 / 0 / 180,000

Depreciation for the year 0 / 96,000 / (96,000)
[(860,000-80,000)*10%+(180,000*10%)]

Closing as at 30 September 2003 960,000 / 450,000 / 510,000

[Rahul]

Second Answer
Cost price of machine (Jan 2003) 40,000
Residual value 10,000
Useful life 6 years
Depreciation per year 5,000
(Cost-Residual Value)/Useful life

Selling price (Dec 2004) 15,000
Net book value on date of sale (30,000)
(40,000-5,000-5,000)
Loss to be charged in SOCI (15,000)

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