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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Depreciation and disposal of assets
5. A printing business is thinking of updating their equipment. They are current valued in the balance sheet on the 31/12/14 as follow at cost of £486,000, with a provision for depreciation of £222,000
During the year they buy 2 new printing machines
1st May 2015 Machine 1 costing £225,000
1st September 2015 Machine 2 – costs £125,000
They are to replace
A photocopier which originally cost £40,000 and had a provision for depreciation of £37,000 which was sold for £5000
An old printing machine – which cost £95,000 had a provision for depreciation of £85, 000 and was sold for scrap at £1,000
The company operates a depreciation policy of 20% reducing balance method and depreciate all assets in the first year of purchase and non in the year of sale.
Prepare the following accounts for the year ending 31/12/2015
Machinery at Cost account
Provision for depreciation account
Disposal account
Can you please help me out im so lost!!!!
That is not an AB/F1/FAB question.
Please use the correct forum – eg FA/F3 – where the tutor will be happy to assist.
