Hi there, i have some questions on depreciation and i really
would appreciate if someone can really take the time to explain to
me... my exams is this Thursday and i can't seem to understand
this....
I will be listing down a few problems . . hopefully someone is
helpful enough to take time writing down the steps with some
explanation...
Here it goes,
1)Trial balance as ay 31 December 2006
Motor Vehicles:
Costs: $86,000
Prov for depreciation at 1 Jan 2006: $44,000
a)In December 2006, company sold delivery van for $4000 in cash.
Vehicle was purchased on 1st July 2004 for $10,000.
Motor Vehicles is to be depreciated 20% on a reducing balance
method.
Full Years depreciation is provided in the year of acquisition
and no depreciation is provided in the year of disposal.
2)Trial Balance as at 31 Dec 08
Motor Vehicles:
Costs: $1,625,000
Acc depreciation at 1 Jan 2008 :
$975,000
a)During the Year, Motor Vans which were purchased on 30th June
2006 for $300,000 were sold for $80,000.
Motor Vehicles is to be depreciated 30% on a reducing balance
method.
Full Years depreciation is provided in the year of acquisition
and no depreciation is provided in the year of disposal.
3) Trial Balance as at 31 Dec 05
Plant and Machinery:
Costs: $320,000
Acc depreciation at : $210,000
a) An Item of plant and machinery, the cost of which had been
$5,000 and whose NBV is $2,300, had been sold in year for
$2,200.
plant & machinery----30% on a reducing balance method.
Full Years depreciation is provided in the year of acquisition
and no depreciation is provided in the year of disposal.
Can someone teach me, Depreciation, Acc depreciation and NBV of
this question...
Some questions give me NBV, some dont, I am also not clear of
the years of depreciation i shoulld provide and how to go abt doing
it.... as in vehicle maybe bought 2 years ago.. but sold of this
year,,, etcc.... and also find out depreciation and acc
depreciation...
i am staying near Jurong Point... if anybody can help me out,
and can spare some time. i don't mind meeting you up.. Please help
out.. can sms me at 8100 5575...
