Question

2015 a machinery was purchased for 19,400 and 600 were spent
ages and fitting. It was decided to provide depreciation @ 10% per a
Instalment Method. Prepare Machinery Account for the first three years.
on its carriages and fittir
Reducing Instalment Method
on:​

Answer 1

Explanation:

Depreciation RBM

= cost of asset * RBM%

= 20,000*10%

= 2000

Depr on Assets for 1yr = 2000

Depr on assets for 2yr = 1800

Depr on assets for 3yr = 1620

Total value of Assets at end of 3 yrs

= cost of asset - total depr

= 20,000 - 5420

= 14,580