27.

2
(a) Equipment & Machine A/C
2014 2014
1.1 Bank 800 31.12 Balance c/d 800
2015 2015
1 .1 Balance b/d 800 31.12 Balance c/d 3,800
1.7 Bank 2,400
1.10 Bank 600
3,800 3,800
2016 2016
1 .1 Balance b/d 3,800 31.12 Balance c/d 5,200
1.4 Bank 1,400
5,200 5,200
2017 2017
1 .1 Balance b/d 5,200 31.12 Balance c/d 5,200
2018 2018
1 .1 Balance b/d 5,200
(b) Accumulated provision for depreciation: Equipment & Machine A/C
2014 2014
31.12 Balance c/d 80 31.12 Profit and loss A/C 80
2015 2015
31.12 Balance c/d 295 1 .1 Balance b/d 80
31.12 Profit and loss A/C 215
295 295
2016 2016
31.12 Balance c/d 780 1 .1 Balance b/d 295
31.12 Profit and loss A/C 485
780 780
2017 2017
31.12 Balance c/d 1,300 1 .1 Balance b/d 780
31.12 Profit and loss A/C 520
1,300 1,300
2018 2018
1 .1 Balance b/d 1,300

Working paper : Calculate depreciation

2014
Cost of Equipment & Machine 800
depreciation 800 ÷ 10 = 80
2015
Cost of Equipment & Machine No.1 800
depreciation 800 ÷ 10 = 80
Cost of Equipment & Machine No.2 2,400
depreciation 2400 ÷ 10 = 2400 * 6/12 120
Cost of Equipment & Machine No.3 600
depreciation 600 ÷ 10 = 60 * 3/12 15
Total depreciation for year 215
2016
Cost of Equipment & Machine old 3,800
depreciation 3800 ÷ 10 = 380
Cost of Equipment & Machine new 1,400
depreciation 1400 ÷ 10 =140 * 9/12 105
Total depreciation for year 485
2017
Cost of Equipment & Machine 5,200
depreciation 5200 ÷ 10 = 520

(c) Statement of Financial Position (Extracts) for the year ending 31-12
$ $
2014 Equipment & Machine at cost 800
less: Accumulated depreciation (80) 720
2015 Equipment & Machine at cost 3,800
less: Accumulated depreciation (295) 3,505
2016 Equipment & Machine at cost 5,200
less: Accumulated depreciation (780) 4,420
2017 Equipment & Machine at cost 5,200
less: Accumulated depreciation (1,300) 3,900