At 31 October 20X6 Roger's trial balance included the following balances: $ Machinery at cost 12,890 Accumulated depreciation 8,950 Inventory 5,754 Trade receivables 11,745 Trade payables 7,830 Bank overdraft 1,675 Cash at bank 150 What is the value of Roger's current assets at 31 October 20X6? A $17,649 B $17,499 C $15,974 D $13,734
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.
At 31 October 20X6 Roger's
$
Machinery at cost 12,890
Inventory 5,754
Trade receivables 11,745
Trade payables 7,830
Bank overdraft 1,675
Cash at bank 150
What is the value of Roger's current assets at 31 October 20X6?
A $17,649
B $17,499
C $15,974
D $13,734
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