May 2019 Q4 b.
ABC Ltd started business on 1/1/14, and its financial year ends on 31 December each year. It had the following Machinery as at December 2018.
The company’s policy is to depreciate assets at a rate of 15% per annum on a straight line basis proportionate to the date of purchase.
Required:
Prepare:
i) The assets accounts (2014-2018); (4 marks)
ii) Provision for depreciation account (2014-2018); and (6 marks)
iii) Statement of financial position extract for each year from 2014 to 2018. (3 marks)