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The plant and and machinery account (at cost) of a business for the year ended 31 December 20X5 was as follows:
Plant and Machinery at cost
Dr side CR side
20X5 20X5
1 Jan Balance b/f 240,000 31 March Transfer to disposal account$60,000
30 Jun Cash purchase of plant 160,000 31 Dec Balance c/f 340,000
total 400,000 total 400,0001 July to 31 December the cost was 340,000 (180,000 + 160,000). So depreciate this for 6 months at 20%. nd why are we adding them? ohh is it because? they purchased a new PPE? so cost added to the addition bought? is it correct?
sir i have watched your lectures but i think i need more practising of the questions..Question 2 The plant and equipment account in the records of C.CO for the year ended 31 December 2006 is shown below
ppe cost account
Drside cr side
Blnce b/f 960,000 30th sept disposals 84,000
1 july cash 48000 balance c/f 924,000
Cco’s policy is to charge straight line depreciation at 20% per year on a pro rata basis
what should be the charge for depreciation in Cco’s statement of profit or loss for the year ended 31 December 2006?
Sir okay it is a similar question to the previous one
Jan to sept if we depreciate and then add the additions along with depreciation ?
sir can u please solve it for me..i am again confused
960,000-84000 X6/12 x 20/100= 91,200
then add the addition to it with time apportionment and then..i dont know what to do..
please solve it the whole
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