Question

A company purchased a plant on 1april2011 for 200000 another plant on 1jan2012 20000 and still another plant for 30000 on 1oct2012.on 01july2013.o plant costing 40000 on 01april2011 was sold for 26500 and plant purchased on 01jan2012 was sold for 1

Answer 1

The basic journal entry for depreciation is to debit the Depreciation Expense account(which appears in the income statement) and credit the Accumulated Depreciation account (which appears in the balance sheet as a contra account that reduces the amount of fixed assets).