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Hi there,
Really finding this website very useful – Thank you.My query is Question 3 of Practice Questions for Chapter 6 – Depreciation.
I am getting the answer 84.8 profit – which is incorrect – I can see how you get your answer but in the question it states no depreciation on year of sale – can you explain why there is a depreciation amount in for year of the sale please?
Thank you
The answer does not charge depreciation in the year of sale.
You have not noticed that the year end is 31 January each year.
The machine was sold on 31 March 2012, which is between 1 Feb 2012 and 31 Jan 2013 – i.e. year ended 31 Jan 2013 – and no depreciation has been charged for this year.
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