Get premium membership and access questions with answers, video lessons as well as revision papers.

XYZ Ltd has three machines in operation. Machine A was bought on 1st January 2013 at Ksh 250,000 and the other two machines; machine B...

      

XYZ Ltd has three machines in operation. Machine A was bought on 1st January 2013 at Ksh 250,000 and the other two machines; machine B and machine C were bought on 1st January 2014 at Ksh 350,000 and Ksh 300,000 respectively. The business has a policy to depreciate all non current assets at 15% using straight line basis of depreciation. On 1st July 2014, XYZ Ltd disposed off the machine bought on 1st January 2013 for Ksh 188,000. Assuming that the financial year of XYZ Ltd ends on 31st December.
Prepare the following accounts relating to financial year ending 31st December 2014 only.
i. Machine Account
ii. Provision for depreciation Account
iii. Disposal Account

  

Answers


Kavungya
fig77178252.png
Kavungya answered the question on August 17, 2021 at 11:52


Next: A business firm started trading on 1st January in year 2013. On 1st April, it bought a new motor vehicle costing Ksh 400,000 and later...
Previous: A company depreciates its plant at the rate of 20% p.a. straight line method for each month of ownership. On 1st January 1999 bought plant costing...

View More Financial Accounting Questions and Answers | Return to Questions Index


Learn High School English on YouTube

Related Questions