The trucks account (at cost) of a business for the year ended 31 December 20X1 was as follows. TRUCKS - COST 20X1 1 Jan balance 30 June cash - purchase of vans $ 240,000 160,000 400,000 A B C D 20X1 $68,000 $57,000 $53,000 $21,000 31 Mar disposal account 31 Dec balance Brought forward accumulated depreciation at 1 January 20X1 was $115,000. The truck disposed of on 31 March had a carrying value of $20,000. $ 60,000 340,000 400,000 The company's policy is to charge depreciation at 20% per year on the reducing balance, and charges a full year's depreciation in the year of acquisition and none in the year of disposal. What should be the depreciation charge for the year ended 31 December 20X1?

The trucks account (at cost) of a business for the year ended 31 December 20X1 was as follows. TRUCKS - COST 20X1 1 Jan balance 30 June cash - purchase of vans $ 240,000 160,000 400,000 A B C D 20X1 $68,000 $57,000 $53,000 $21,000 31 Mar disposal account 31 Dec balance Brought forward accumulated depreciation at 1 January 20X1 was $115,000. The truck disposed of on 31 March had a carrying value of $20,000. $ 60,000 340,000 400,000 The company's policy is to charge depreciation at 20% per year on the reducing balance, and charges a full year's depreciation in the year of acquisition and none in the year of disposal. What should be the depreciation charge for the year ended 31 December 20X1?

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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Your staff person has provided you with the following journal entry for January 20x1 depreciation. The monthly deprecation is supposed to be $100.00. What is wrong with this entry?
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