Need Help

System
System Posts: 100,534 🤖 Admin 🤖
Hope someone can help me: I am trying to answer this question and i am totally stuck.

On 1 Jan 1901 a businss purchased a laser printer costing £1,800. The print has an estimated life of 4 years after which it will have no residual values

Suppose that in 1904 the laser printer were to be sold on 1 july for £200 and that the business had chosen to depreciate it at 60% per annum using the dininishing blance method applied on a month for month basis.
Reconstruct the following acouns for 1904 only:

i) the laser printer account
ii) the provision for Depreciation - Laser Printer account, and
iii) the assets disposals account.

Can someone help pleasssse!!!!!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Need Help

    i) the laser printer account
    printer will be credit 1800


    ii) the provision for Depreciation - Laser Printer account
    im not so sure on this one dr the depreciation charge as the expense has been realised but im not sure about this one again



    dr provision for depreciation and

    so it could be



    iii) the assets disposals account.
    dr 1800
    cr 200
    cr depcrciation
    dr/cr Profit and loss depending on wether you made a profit or loss in this case dr as u made a loss

    im not even going to attempt the figures as they look like a wind up

    but its basically reducing balance method on a monthly reduction
    cr provision for depreciation each month
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