a companys plant and machinery ledger account for year ended 30 september 2002 was as follows
plant and machinery
2001$ 2 002$
1 oct balance 381200 1 jun disposal account cost of asset sold 36000
1 dec cash addition 18000 30 sept balance 363200
399200 399200
depreciation is straight line 20% per year with proportionate dep in years of purchase and disposal
what is dep charge fr year ended 30 sept 2002
please help
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depreciation
10y ago#1Is there no answer in the book in which you found the question??
The cost was 381200 from 1 October to 30 November. That is 2 months and so the depreciation for this period is 2/12 x 20% x 381200.
It then increased to 381200 + 18,000 = 399,200, and stayed at this amount from 1 December to 30 May which is 6 months. So the depreciation for this period is 6/12 x 20% x 399200.
It then fell to 399200 - 36000 = 363200 and stayed at this amount from 1 June to 30 September which is 4 months. So the depreciation for this period is 4/12 x 20% x 363200.
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