fixed asset and depreciation hellllllp
jkc
Registered Posts: 166 Dedicated contributor 🦉
stumped
1st june 2007 a company owns machines costing 125 000 which had been depreciated
by 900000
on 1st Aug 2007 sold machines for 55,000 depreciated by 500000 for 4000
and bought a new machines cost 70 000
depreciation is 35% using reducing line method
hellp thanks
1st june 2007 a company owns machines costing 125 000 which had been depreciated
by 900000
on 1st Aug 2007 sold machines for 55,000 depreciated by 500000 for 4000
and bought a new machines cost 70 000
depreciation is 35% using reducing line method
hellp thanks
0
Comments
-
stumped
1st june 2007 a company owns machines costing 125 000 which had been depreciated
by 900000
on 1st Aug 2007 sold machines for 55,000 depreciated by 500000 for 4000
and bought a new machines cost 70 000
depreciation is 35% using reducing line method
hellp thanks
What are you trying to ask? Do you want to know what 35% depreciation is on 70000 over year?0 -
hi thanks
on depreciation
what do you do when an amount has already depreciated.
and the double entry for this0 -
Are these figures right? How can machines that cost £125,000 be depreciated by £900,000?/£55,000 and depreciated by £500,000?0
-
sorry head mash such a numpty today knock a naught off
shd be 90, 000 and 50,0000 -
You say the depreciation method is reducing line, do you mean reducing balance or straight line?
And you say depreciated by 50,000 for 4,000, what is the 4000?!0 -
hi Gem
thanks for your help
4000 is what the machine costing 55000 had been sold for
but it had already been depreciated by 50,000
the company uses reducing balance method.
I guess im asking about double entry more than any thing.0 -
hi Gem
thanks for your help
4000 is what the machine costing 55000 had been sold for
but it had already been depreciated by 50,000
the company uses reducing balance method.
I guess im asking about double entry more than any thing.
You would need to set up a disposals account, debit the account with the cost of the original machine (55,000) and credit machine at cost account. Credit disposals account with the 4,000 and debit the bank and credit the disposals with 50,000 for depreciation and debit depreciation account. You will then have 1,000 outstanding which will be debited (I think) to profit and loss account as a loss on disposal.0 -
thanks esme0
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