Depreciation charge

sscors

Hey I don't get why deprec is charged again in this question

On 31 Dec 20X3 a business sells a van which it bought on 1 Jan 20X0 for 6000 and has depreciated each year at 25% by the straight line method assuming nil residual. The business charges a full years charge in the year of acquistion and none in the year of disposal. It trades this van in for a new one costing 10000 and pays supplier 9200.

In the soln in accum deprec ledger account credit side there is a bal b/d of 4500 and deprec charge of 2500. Not sure why deprec charge is there?

Any ideas much appreciated

SandyHood

The business charges a full years charge in the year of acquisition
a new one costing 10000
depreciation is 25%

£2,500 represents the 25% of the new acquisition