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(i) The Machinery account in the records of a company for the year ended 31 December 2018 is shown below:
Machinery – at cost
£ £
Opening bal. 300,000 30 November Disposals 120,000
1 June Bank 72,000 Bal c/d 252,000
372,000 372,000The company’s policy is to charge straight line depreciation at 10% per year on a proportionate basis.
300,000 – 120,000 = 180,000
180,000 + 72,000 = 252, 000What should be the charge for depreciation in the statement of profit or loss for the year ended 31 December 2018?
A £25,200
B £20,400
C £33,200
D £30,000
Hi can you please explain this question to me step by step and how to get the answer. I’m quite confused
Thank you!Opening bal. 300,000
1 June Bank 72,000
372,00030 November Disposals 120,000
Bal c/d 252,000
372,000 372,000Sorry i hope this makes it look a bit clearer
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