On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an expected useful life of 4 years and a residual value of $3,000 plus GST and assuming the balance day is 30 June. As per organizational policy, the business has decided to use the Reducing Balance Method to depreciate the computers. Calculate the depreciation by using the Reducing Balance Method. Task 4 Calculate the depreciation, for the financial years ended 30 June 2018, 2019 and 2020. The rate of depreciation is 30% pa. Answer: + Asset Cost: Less: Residual Value Depreciable Amount Depreciation method Depreciation p.a: Date Computers Depreciation Worksheet - Snow Lake Pty Ltd Asset Cost Depreciation Accumulated Depreciation Carrying Amount at the end

On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an expected useful life of 4 years and a residual value of $3,000 plus GST and assuming the balance day is 30 June. As per organizational policy, the business has decided to use the Reducing Balance Method to depreciate the computers. Calculate the depreciation by using the Reducing Balance Method. Task 4 Calculate the depreciation, for the financial years ended 30 June 2018, 2019 and 2020. The rate of depreciation is 30% pa. Answer: + Asset Cost: Less: Residual Value Depreciable Amount Depreciation method Depreciation p.a: Date Computers Depreciation Worksheet - Snow Lake Pty Ltd Asset Cost Depreciation Accumulated Depreciation Carrying Amount at the end

Name: Task 5Using the information from your worksheet above, prepare approp
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Description: Task 5Using the information from your worksheet above, prepare appropriate journal entries to record the sale ofthe computers on 28 February 2021 for $19,800 cash (inclusive of GST). Please check your textbook toprovide the correct procedure of the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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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Question

Task 5
Using the information from your worksheet above, prepare appropriate journal entries to record the sale of
the computers on 28 February 2021 for $19,800 cash (inclusive of GST). Please check your textbook to
provide the correct procedure of the journal entries for disposal.
Answer:
Date
General Journal
Particulars
Debit
Credit
I

On 31 December 2017, Snow Lake Pty Ltd purchased computers on credit for $60,000 plus GST. It has an
expected useful life of 4 years and a residual value of $3,000 plus GST and assuming the balance day is 30
June. As per organizational policy, the business has decided to use the Reducing Balance Method to
depreciate the computers. Calculate the depreciation by using the Reducing Balance Method.
Task 4
Calculate the depreciation, for the financial years ended 30 June 2018, 2019 and 2020. The rate of
depreciation is 30% pa.
Answer:
Asset Cost:
Less: Residual Value
Depreciable Amount
Depreciation
method
Depreciation p.a:
Date
Computers Depreciation Worksheet - Snow Lake Pty Ltd
Asset Cost
Depreciation
Accumulated
Depreciation
Carrying Amount at
the end
F
M

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