Calculate the amount of depreciation charged

Assignment Help Accounting Basics

Reference no: EM13784817

James, a business person started a transport business with two cars TA and TB which he purchased for Kshs 600,000 and Kshs 945,000 respectively in year 2010. In March 2012, vehicle TB was involved in an accident and was written off. In the same year he bought two cars TC and TD for Kshs 800,000 each. In September 2013 he sold vehicle TC for Kshs 726,000. In January 2014 he purchased vehicle TE for Kshs 765,000. In March 2014 he purchased vehicle TF for Kshs 930,000. James depreciates vehicles at the rate of 25 per cent on cost on vehicles at hand at the end of the year irrespective of the date of purchase. He does not provided depreciation for vehicles disposed during the year. His accounting date is 31st December.

Required:

i) What do you understand by the term accounting date?

ii) Calculate the amount of depreciation charged in the statement of incomes for each of the five years.

Reference no: EM13784817

Questions Cloud

What opportunities and threats will marketers encounter : What opportunities and threats will marketers encounter as a result of climate change? Please select a brand and discuss examples of the opportunities and threats that you anticipate will challenge this brand. What can the marketer do to capitalize o..

Non-living aquatic environment issues : John Muir advocated a position that emphasized the intrinsic, aesthetic, and spiritual values of wild places, and he advocated keeping the natural world pristine

Straight sales from your customers : Let’s imagine you are the customer portfolio manager of a wireless phone company. How should you be evaluated at the end of the quarter? Straight sales from your customers? Net sales (sales minus cost to serve)? Customer satisfaction?

Does the organization integrate technology into its operatio : Answer the following questions about Universal Studios' business practices: 1. Does the organization operate in a non-union or union environment? 2. Does the organization integrate technology into its operations? If so, give examples. 3. Does the org..

Calculate the amount of depreciation charged : What do you understand by the term accounting date? Calculate the amount of depreciation charged in the statement of incomes for each of the five years.

Hazardous waste and international environmental policy : How can domestic policy address this issue, when domestic policy applies to domestic issues, rather than being capable of governing other lands?

Briefly describe the position''s main duties : Briefly describe the position's main duties

Advantages of using audit software : List some of the advantages of using audit software. Explain how you can use such software in an audit area of your choice.

Make sure the information is reliable and accurate : What exactly is a blog? What are some ways that businesses use them? In your opinion, are blogs a legitimate source of information? Should they be allowed as quality sources in academic and business writing? If you use a blog as a source of informati..

User Account

All Pages