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Hello, could you, please, help me?
Bpp mixed bank 2 , question 30.1 about depreciation. Page 136
Should I write a whole question here?
I do not understand why we need to substract 14.000 from 280.000 in order to calculate depreciation?
Thank you very much in advanced,
TatsianaIt is because if you look at the t-account in the question, assets with a cost of 14,000 were sold on 30 June. Since it is proportional depreciation, these assets are depreciated (as part of the total) up to 30 June, but not after the are sold – so they need removing when calculating the depreciation on the remaining assets for the rest of the year.
My free lectures on depreciation will help you. The lectures are a complete free course and cover everything needed to be able to pass the exam well.
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