8. A company maintains its fixed assets at cost. Depreciation provision account is prepared using 12% per annum on straight line method for machinery and 10 % for fixtures, using reducing balance method. Full year depreciation is charged only on assets in use at the end of the year irrespective of the number of months the asset has been used for a particular year. The following transactions took place during the year: 1990 1st January, Bought machinery ¢640,000, Fixtures ¢100,000. 1st January, Fixtures ¢200,000 1991 1st October, Bought machinery ¢720,000 1st December Bought fixtures ¢50,000 You are required to prepare: i. The machinery account ii. The Fixtures account iii. The provision for depreciation iv. The balance sheet extract.

8. A company maintains its fixed assets at cost. Depreciation provision account is prepared using 12% per annum on straight line method for machinery and 10 % for fixtures, using reducing balance method. Full year depreciation is charged only on assets in use at the end of the year irrespective of the number of months the asset has been used for a particular year. The following transactions took place during the year: 1990 1st January, Bought machinery ¢640,000, Fixtures ¢100,000. 1st January, Fixtures ¢200,000 1991 1st October, Bought machinery ¢720,000 1st December Bought fixtures ¢50,000 You are required to prepare: i. The machinery account ii. The Fixtures account iii. The provision for depreciation iv. The balance sheet extract.

Name: 8. A company maintains its fixed assets at cost. Depreciation provisi
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Description: 8. A company maintains its fixed assets at cost. Depreciation provision account is prepared using12% per annum on straight line method for machinery and 10 % for fixtures, using reducingbalance method. Full year depreciation is charged only on asset

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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