User Account

All Pages

Calculate the annual depreciation charge

Assignment Help Accounting Basics
Reference no: EM132608348

Question - Betax Limited has recently purchased new machinery with the following pricing details.

Rs

Cost per price list 60000

Less 10% trade discount 6000 54000

Delivery costs 1000

Installation costs 2000

The machinery maintenance costs are estimated to be Rs 5000 per annum. The business plans to keep the machinery for five years and then dispose of it for an estimated residual value of Rs 4000.

Required -

a. Calculate the cost figure which should be used as the basis for depreciation.

b. Calculate the annual depreciation charge using the straight line method.

c. Prepare the Disposal of Machinery Account if the machinery is sold for Rs 12 000 at the end of four years.

d. 'Provision for depreciation is made to provide for the replacement of a fixed asset.' Discuss this statement.

Reference no: EM132608348

Questions Cloud

Performance evaluation analysis of process automation : Find 1 company and say the name of the company! Find the activities or automation of the Customer Relationship Management process
What is the present worth of this grant : If the first payment is a year from now and a total of 5 payments are to be made, what is the present worth of this grant
Implementing self-service technology : Explain how the self-service technology (SST) strategy affects customer experience in the banking industry
Effective leader and a successful leader : Provide one real life example each of an effective leader and a successful leader.
Calculate the annual depreciation charge : Betax Limited has recently purchased new machinery with the following pricing details. Calculate the annual depreciation charge
Discuss the challenges that contemporary organizations : Discuss the challenges that contemporary organizations are facing in terms of workforce diversity, by focusing on 'values across cultures'.
Benefit of understanding organizational behavior : What is the benefit of understanding Organizational Behavior to a Manager?
Efficiency and service levels in the workplace : How do you monitor efficiency and service levels in the workplace?
Action-observation-reflection model : Leadership styles and practices have evolved over the last century in response to changing work environments and employee

Reviews

Write a Review

Accounting Basics Questions & Answers

  ACC 101 Accounting principles Assignment

ACC 101 Accounting principles Assignment Help and Solution, Emirates College of Technology - Assessment Writing Service - periodic inventory systems

  Which the principal is paid as a single amount at maturity

How does an installment note differ from a note for which the principal is paid as a single amount at maturity?

  Discuss discussion boards from the current module

Compose a post of one to two paragraphs for your assigned topic,

  Amount of withdrawal after tax considerations

What amount of the withdrawal, after tax considerations, will Brooklyn have available to purchase the car?

  With the introduction of computer-generated animated films

with the introduction of computer-generated animated films cgi there has been much discussion of the impact on the

  Benefits from the use of interest rate swap

Suppose both Company A and B entered into the 3-year swaps with the swap bank. One year after the inception of the 3-year swaps, the swap bank quotes 2-year interest rate swaps at 6.5% - 7%. Which company is willing to unwind the original swap? Ex..

  Expensed as incurred in a manufacturing setting

McCabe Manufacturing Co.'s static budget at 8,000 units of production includes $40,000 for direct labor and $4,000 for electric power.

  Calculate the future value of a 4-year ordinary annuity of

a. calculate the future value of a 4-year ordinary annuity of 1000 if the appropriate interest rate is 11.5b. whats the

  The amount of fica taxes that was withheld from his earnings

George Parker was paid a salary of $74,700 during 2013 by Umberger Company. In addition, during the year, Parker started his own business as a public accountant and reported a net business income of $38,900 on his income tax return for 2013. Compute ..

  Abel and co is newly established company and needs your

abel and co. is newly established company and needs your helpfor recording corporate dividends and retained

  Adjusting entry for uncollectibles

Wecker Company's year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable. a) Prepare the Decemb..

  What amount of depreciation expense should be recorded

The truck has an estimated life of 300,00 miles. What amount of depreciation expense should be recorded in the second year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd