A company whose accounting year is the financial year, purchased on 1 April 2018 machinery costing 30,000. It purchased further machinery on 1st October 2018 costing 20,000 and on 1* July 2019 costing 10,000. On 1st January 2020 the machinery installed on 1* April 2018 became obsolete and was sold for 3000. Show how Machinery account, Depreciation account, provision for depreciation account and Asset disposal account would appear in the books of the company for 2 years, it being given that machinery was depreciated by fixed installment method @10% per annum.

A company whose accounting year is the financial year, purchased on 1 April 2018 machinery costing 30,000. It purchased further machinery on 1st October 2018 costing 20,000 and on 1* July 2019 costing 10,000. On 1st January 2020 the machinery installed on 1* April 2018 became obsolete and was sold for 3000. Show how Machinery account, Depreciation account, provision for depreciation account and Asset disposal account would appear in the books of the company for 2 years, it being given that machinery was depreciated by fixed installment method @10% per annum.

Name: SA company whose accounting year is the financial year, purchased on
Uploaded: 2024-03-05T11:50:36.000Z
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Description: SA company whose accounting year is the financial year, purchased on 1April 2018 machinery costing 30,000. It purchased further machinery on1s* October 2018 costing 20,000 and on 1 July 2019 costing 10,000. On1st January 2020 the machinery installed

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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