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General Suppliers Limited_Depreciation




Question;The balance sheet as at 31;December 1983 of General Suppliers Limited included the following;Plant and machinery at;cost $100000;Aggregate Depreciation $17000;Total $83000;The company provide;depreciation on the cost of plant and machinery at the rate of 10% per annum;using straight line method.;The bulk of the plant and;machinery was acquired when the company commence business further plant and;machinery costing $20000 was acquire on 1 July 1983.;On 31 March 1984 plant and;machinery written down value on 31 December 1983 was $2000 was sold $500.;On 1 July 1984 a machine;was acquire at cost of $1000 when the company commence business was;part-exchange for a new machine the balance of the purchase price being met;with cheque for $800.;The list price of new machine;was $1200.;On 1 October 1984, the;company transfer to its factory a machine which had been included in is trading;stock and which bore a price label of $15000.;The company always makes;gross profit of 40% on machinery sales.;Required;1) the plant and machinery;at cost for year ended 31 December 1984;2) the disposal of plant;and machinery account for year ended 31 December 1984;3) the entry in the;balance sheet as at 31 December 1984 for plant and machinery.


Paper#37376 | Written in 18-Jul-2015

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