ars 6,000 Straight-line Mini-van 55,000 25,000 10 years 5,000 Straight-line Required: Record the following transactions for Speedy Couriers for the year ending 30 June 2018 in the general journal. Narrations are not required. 1 July 2018: The owners of Speedy Couriers decided to re-value the Van to a fair value of $50,000. 30 December 2018: The courier van was exchanged for a new truck with a cash price of $64,000. A trade-in allowance of $27,000 was received for the courier van. The balance outstanding was paid in cash. 30 June 2019: The mini-van was overhauled a
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Details of courier vehicles owned by Speedy Couriers at 1 July 2018 are as follows: This business is registered for GST. Cost
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