Solution 9.12
|
DR |
Machinery Account |
CR |
|||||
|
|
|
€ |
|
|
€ |
||
|
5/1/Y1 |
Bank a/c |
100,000 |
|
|
|
||
|
1/9/Y1 |
Bank a/c |
220,000 |
31/12/Y1 |
Bal c/d |
320,000 |
||
|
|
|
320,000 |
|
|
320,000 |
||
|
1/1/Y2 |
Bal b/d |
320,000 |
30/7/Y2 |
Disposal a/c |
100,000 |
||
|
1/8/Y2 |
Bank a/c |
130,000 |
31/12/Y2 |
Bal c/d |
350,000 |
||
|
|
|
450,000 |
|
|
450,000 |
||
|
1/1/Y3 |
Bal b/d |
350,000 |
|
|
|
||
|
DR |
Provision for Depreciation of Machinery Account |
CR |
|||||
|
|
|
€ |
|
|
€ |
||
|
31/12/Y1 |
Bal c/d |
52,000 |
31/12/Y1 |
P & L a/c |
52,000 |
||
|
30/7/Y2 |
Disposal a/c |
47,500 |
1/1/Y2 |
Bal b/d |
52,000 |
||
|
31/12/Y2 |
Bal c/d |
104,250 |
31/12/Y2 |
P & L a/c |
99,750 |
||
|
|
|
151,750 |
|
|
151,750 |
||
|
|
|
|
1/1/Y3 |
Bal b/d |
104,250 |
||
|
DR |
Disposal Account |
CR |
|||||
|
|
|
€ |
|
|
€ |
||
|
30/7/Y2 |
Machinery a/c |
100,000 |
30/7/Y2 |
Depreciation a/c |
47,500 |
||
|
|
|
|
30/7/Y2 |
Bank a/c |
45,000 |
||
|
|
|
|
30/7/Y2 |
P & L a/c |
7,500 |
||
|
|
|
100,000 |
|
|
100,000 |
||
|
DR |
Income Statement (P&L Extract) |
CR |
|||||
|
|
|
€ |
|
|
€ |
||
|
Yr 1 |
Depreciation – machinery |
52,000 |
|
|
|
||
|
Yr 2 |
Disposal loss |
7,500 |
|
|
|
||
|
Yr 2 |
Depreciation – machinery |
99,750 |
|
|
|
||
Statement of Financial position (Extract)
|
Non Current Assets |
Cost
|
Accumulated Depreciation |
Net Book Value |
|
|
€ |
€ |
€ |
|
Yr 1 Machinery |
320,000 |
(52,000) |
268,000 |
|
Yr 2 Machinery |
350,000 |
(104,250) |
245,750 |
Depreciation calculations:
|
Year 1
|
|
Year 2 |
|
|
Machine 1 100,000 x 30% |
30,000 |
Machine 1 100,000 x 30% x7/12 |
17,500 |
|
Machine 2 220,000 x 30% x4/12 |
22,000 |
Machine 2 220,000 x 30% |
66,000 |
|
|
|
Machine 3 130,000 x 30% x5/12 |
16,250 |
|
|
52,000 |
|
99,750 |