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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 helpIs 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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