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on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year
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on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated ...
Depreciation Calculation
To calculate depreciation, we can use the straight-line method, which is appropriate for this scenario. The formula for annual depreciation is:
Annual Depreciation = (Cost of Asset - Scrap Value) / Useful Life
- Cost of Machinery: R 28,000
- Scrap Value: R 3,000
- Useful Life: 5 years
Using the formula:
- Annual Depreciation = (28,000 - 3,000) / 5 = R 5,000 per year
Machinery Account Preparation
The Machinery Account will reflect the purchase and annual depreciation over the first three years.
Machinery Account for Three Years
| Date | Particulars | Debit (R) | Credit (R) |
|------------|--------------------|-----------|------------|
| 01/04/2011 | To Bank (Purchase) | 28,000 | |
| 31/03/2012 | By Depreciation | | 5,000 |
| 31/03/2013 | By Depreciation | | 5,000 |
| 31/03/2014 | By Depreciation | | 5,000 |
| | Total | 28,000 | 15,000 |
Summary of Depreciation
- Depreciation for Year 1 (2011-2012): R 5,000
- Depreciation for Year 2 (2012-2013): R 5,000
- Depreciation for Year 3 (2013-2014): R 5,000
Total Depreciation Over Three Years: R 15,000
Conclusion
The machinery has been depreciated by R 5,000 each year for three years, resulting in a total depreciation of R 15,000 by the end of the third year. The carrying amount of the machinery at the end of Year 3 would be R 13,000 (R 28,000 - R 15,000).
To calculate depreciation, we can use the straight-line method, which is appropriate for this scenario. The formula for annual depreciation is:
Annual Depreciation = (Cost of Asset - Scrap Value) / Useful Life
- Cost of Machinery: R 28,000
- Scrap Value: R 3,000
- Useful Life: 5 years
Using the formula:
- Annual Depreciation = (28,000 - 3,000) / 5 = R 5,000 per year
Machinery Account Preparation
The Machinery Account will reflect the purchase and annual depreciation over the first three years.
Machinery Account for Three Years
| Date | Particulars | Debit (R) | Credit (R) |
|------------|--------------------|-----------|------------|
| 01/04/2011 | To Bank (Purchase) | 28,000 | |
| 31/03/2012 | By Depreciation | | 5,000 |
| 31/03/2013 | By Depreciation | | 5,000 |
| 31/03/2014 | By Depreciation | | 5,000 |
| | Total | 28,000 | 15,000 |
Summary of Depreciation
- Depreciation for Year 1 (2011-2012): R 5,000
- Depreciation for Year 2 (2012-2013): R 5,000
- Depreciation for Year 3 (2013-2014): R 5,000
Total Depreciation Over Three Years: R 15,000
Conclusion
The machinery has been depreciated by R 5,000 each year for three years, resulting in a total depreciation of R 15,000 by the end of the third year. The carrying amount of the machinery at the end of Year 3 would be R 13,000 (R 28,000 - R 15,000).
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on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated ...
there are 2 methods of calculating depreciation
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on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year
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on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year.
on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for on 1/4/2011 a firm purchased a machinery for r 28000. it's estimated life is 5 year with scrap value of r 3000. calculate the amount of depreciation and prepare machinery A/C for three year.
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