Three methods of calculating depreciation (part 2)

Question 1

Mini Store provided the following non-current assets details:

Non-current Date of Method of

assets purchase Details depreciation
Cost=$27000
1 January, Useful life=4 years
Machinery Estimated scrap Straight line
2018
value=$1000
Cost=$27000
1 October, Rate of
Furniture depreciation=15%
Straight line
2018
per annum
Cost=$30000
Motor Rate of
1 July, 2017 Reducing balance
Vehicles depreciation=20%
per annum
Beginning of year
value=$400
Tools and 1 January, Purchased during the
year=$600 Revaluation
equipment 2019
Estimated year end
value=$800
You are required to show the calculation of annual depreciation charges and the
effect on the financial
statements.

Annual depreciation
Non-current Year to 31 Provision for
assets December
expenses (Profit and
depreciation (SOFP)
Net Book Value
Loss Account)

2018
Machinery
2019

2018
Furniture

2019

2017

Motor
2018
Vehicles

2019

Tools and
2019
Equipment