Bpp Depreciation

How did they get the 8000 ?


  • NeilH
    NeilH Registered Posts: 553

    The asset will have a residual value of £4,000, so you need to depreciate £16,000 over four years = £4,000 depreciation per year.

    At the end of the third year (30 June 20X3) you will therefore have depreciated £12,000 of the £20,000 asset leaving a balance sheet value of £8,000.
  • Alaa
    Alaa Registered Posts: 30
    Thank you so much for the explanation
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