lassified Income Statement for the year ended 30 June 20X8, and A Classified Balance Sheet as at 30 June 20X8.
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.
The following
|
Plant and machinery |
112660 |
|
|
Office furniture and equipment
|
80000 |
|
|
|
|
24610 |
|
Accumulated depreciation-office furniture and equipment
|
|
9060 |
|
Inventory |
25600 |
|
|
Petty cash |
1500 |
|
|
|
13960 |
|
|
GST paid |
67300 |
|
|
Accounts payable |
|
15200 |
|
GST collected |
|
83000 |
|
Bank (overdraft) |
|
11230 |
|
Sales |
|
831600 |
|
Commission income |
|
5200 |
|
Cost of goods sold |
555860 |
|
|
Advertising- products |
3090 |
|
|
Salaries-office staff |
109530 |
|
|
Light and power |
11800 |
|
|
Rent expense |
72000 |
|
|
Insurance |
11310 |
|
|
Postage and stationery |
9150 |
|
|
Repairs and maintenance |
10020 |
|
|
|
3060 |
|
|
Discount allowed |
1040 |
|
|
Drawings
|
13620 |
|
|
Capital |
|
121600 |
|
|
1101500 |
1101500 |
The following adjustments are required as at 30 June 20X8:
|
Inventory on hand as per stock take 30.6.20X8 |
$27600 |
|
Salaries to be accrued |
$550 |
|
Insurance prepaid |
$1050 |
|
Write-off of a further bad debt inclusive of GST is required |
$836 |
|
Depreciation to be provided: · plant and machinery · office furniture and equipment |
|
|
$12850 |
|
|
$11250 |
prepare
- Classified Income Statement for the year ended 30 June 20X8, and
- A Classified
Balance Sheet as at 30 June 20X8.
plss send the same within 30 mins
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