Q3. An extract from the statement of financial position of Senior Fredizzo Ltd. as at 31t December 2014 is given below: Asset Cost Net Book Value GHC'000 GHC'000 Plant and Machinery 200,000 125,583 Additional information: AMANDO 2 OF 2 It is the policy of the business to provide for depreciation at the rate of 10% per annum on reducing balance basis. Annual depreciation is calculated on asset in use at the end of the year. The following transactions took place in 2015: i. Plant which cost GHC35,000,000 and had been used for four years was sold for GH¢24,000,000. ii. A new plant costing GHC40,000,000 was acquired on 1s* January, 2015. You are required to prepare: a) Plant and machinery account. b) Provision for depreciation account for the year ended 31t December, 2014 and 2015 c) Plant and machinery disposal account.

Q3. An extract from the statement of financial position of Senior Fredizzo Ltd. as at 31t December 2014 is given below: Asset Cost Net Book Value GHC'000 GHC'000 Plant and Machinery 200,000 125,583 Additional information: AMANDO 2 OF 2 It is the policy of the business to provide for depreciation at the rate of 10% per annum on reducing balance basis. Annual depreciation is calculated on asset in use at the end of the year. The following transactions took place in 2015: i. Plant which cost GHC35,000,000 and had been used for four years was sold for GH¢24,000,000. ii. A new plant costing GHC40,000,000 was acquired on 1s* January, 2015. You are required to prepare: a) Plant and machinery account. b) Provision for depreciation account for the year ended 31t December, 2014 and 2015 c) Plant and machinery disposal account.

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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