Alpha Corporation owns machinery that costs Tk 10,50,000 when purchased onMarch 1, 2014. Depreciation has been recorded 10% per year and its residual valuehas been detemined Tk 50,000. The useful life of the asset was initially detemined 10years but after 2 years it is observed that it can be used 3 years more. The machineryis sold on March 1, 2018, for Tk 1,25,000. The company used diminishing balancemethod for their depreciation. Prepare joumal entries to (i) update depreciation for2018 and (ii) record the sale.

Depreciation is the decrease in value of asset due to wear and tear.

Alpha Corporation owns machinery that costs Tk 10,50,000 when purchased on March 1, 2014. Depreciation has been recorded 10% per year and its residual value has been detemined Tk 50,000. The useful life of the asset was initially determined 10 years but after 2 years it is observed that it can be used 3 years more. The machinery is sold on March 1, 2018, for Tk 1,25,000. The company used diminishing balance method for their depreciation. Prepare joumal entries to (1) update depreciation for 2018 and (ii) record the sale.

Alpha Corporation owns machinery that costs Tk 10,50,000 when purchased on March 1, 2014. Depreciation has been recorded 10% per year and its residual value has been detemined Tk 50,000. The useful life of the asset was initially determined 10 years but after 2 years it is observed that it can be used 3 years more. The machinery is sold on March 1, 2018, for Tk 1,25,000. The company used diminishing balance method for their depreciation. Prepare joumal entries to (1) update depreciation for 2018 and (ii) record the sale.

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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