Question

On 1-1- 2010 a missionary was purchased for 8000 it was sold on 30 for 6000 depreciation is charge at 10% on original cost books are close on 31st December every year prepare missionary account and depreciation account for the the above period

Answer 1

since the depriciation will be charged on original cost it means it is straight line method i.e. 10% of annually since in 2013 depriciation is charged for only six months i.e.8000* 10%12=400