IV. Disposal of machines account. Using the information given at the beginning of this question, show a computation of the depreciation for the year 2006, 2007 and 2008: based on the rate of depreciation of 20% on reducing balance basis. (Individual accounts are not required) V.
IV. Disposal of machines account. Using the information given at the beginning of this question, show a computation of the depreciation for the year 2006, 2007 and 2008: based on the rate of depreciation of 20% on reducing balance basis. (Individual accounts are not required) V.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly IV and V
Transcribed Image Text:QUESTION TWO
J. Mwakisha, a contractor, started business on 1 January 2006. Purchases and disposals of
machines over the subsequent three years were as follows:
Machine
Cost
(Shs.)
5,000,000
2,500,000
7,000,000
Date of
Date of
Disposal
proceeds (Shs.)
Purchase
Disposal
1 January 2006
I January 2006
1 January 2008
The machines are depreciated on straight line basis using a rate of 20% per annum
MAI
---
MB 2
1 January 2008
900,000
МС 3
---
---
Required:
Write up the following accounts as they would appear in J. Mwakisha's books for the
years 2006, 2007 and 2008
Machines at cost account:
I.
I.
Provision for depreciation on machine account;
Disposal of machines account.
Using the information given at the beginning of this question, show a computation of
the depreciation for the year 2006, 2007 and 2008: based on the rate of depreciation
of 20% on reducing balance basis. (Individual accounts are not required)
III.
IV.
V.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education