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Question 1pusher Commenced Business On 1 January 2010 With Two Lorries A And B A Cost

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a) 20% Straight Line Method
Lorry A : Depreciation Expense
2010
20% x 1000 = 200
Loss on disposal of A
2011
(1000-200) – 750 = 50
Lorry B : Depreciation expense
2010
20% x 1600 = 320
2011
20% x 1600 = 320
2012
20% x 1600 = 320
Lorry C : Depreciation expense
2011
20% x 2000 = 400
2012
20% x 2000 = 400
Provision of depreciation
2010
200+ 320 = 520
2011
320+ 400 = 720
2012
320+ 400 = 720
For statement of finacial position (balance sheet)
Cost of vehicles
2010
1000 (A) + 1600 (B) = 2600
2011
2000 (C) + 1600 (B) = 3600
2012
2000 (C) + 1600 (B) = 3600
Accumulated depreciation
2010
520
2011
520-200+ 720 = 1040
2012
1040+ 720 = 1760Business