i) ii) Tina owns a retail business called Tina Trading. The following balances were extracted from her books on 30 June 2020: (a) Capital, 1 July 2019 Fixtures and fittings at cost Motor vehicles at cost Accumulated depreciation (b) Fixtures and fittings Motor vehicles Additional information: Trade receivables Trade payables Cost of sales Sales revenue Motor expenses Insurance Allowance for impairment of trade receivables Interest Income Wages and Salaries Drawings Cash at bank Inventory Rent Bank loan REQUIRED pho solution $ 20 000 8 000 15 000 2 000 1 500 7 000 4 150 30 840 90 800 630 6 000 350 3 800 20 500 1 400 920 7 310 30 000 5 000 During 2020, Tina withdrew goods valued at $400 from the business for private use. No entry had been made in the books for the withdrawal of these goods. Owner contributes $20 000 into the business bank account. CESTUDER Prepare the statement of financial performance for the year ended 30 June 2020. Prepare the statement of financial position as at 30 June 2020.
i) ii) Tina owns a retail business called Tina Trading. The following balances were extracted from her books on 30 June 2020: (a) Capital, 1 July 2019 Fixtures and fittings at cost Motor vehicles at cost Accumulated depreciation (b) Fixtures and fittings Motor vehicles Additional information: Trade receivables Trade payables Cost of sales Sales revenue Motor expenses Insurance Allowance for impairment of trade receivables Interest Income Wages and Salaries Drawings Cash at bank Inventory Rent Bank loan REQUIRED pho solution $ 20 000 8 000 15 000 2 000 1 500 7 000 4 150 30 840 90 800 630 6 000 350 3 800 20 500 1 400 920 7 310 30 000 5 000 During 2020, Tina withdrew goods valued at $400 from the business for private use. No entry had been made in the books for the withdrawal of these goods. Owner contributes $20 000 into the business bank account. CESTUDER Prepare the statement of financial performance for the year ended 30 June 2020. Prepare the statement of financial position as at 30 June 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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