Question

3 DEPRECIATION METHODS On January 2009 ago Compaypad w ants in the business. The woman total of $150.000, dan dalaga $15.000 and and s o of years or 30.000 hours Ach a ge of the part ws: 8,000 hon in 2009, 7.000 hours in 2010 8.000 hours in 2011.5.000 hours in 2012: 4.000 hours in 2018 Anal - 100% Segue nyon Equipment 150,000 Costa Salvage w Lonca e re cost SAVOGE voituc 15,000 All but last year of the Book Beaty S Alif Syecil Last year of the Book value Bag of You a dows for the year mad e for the year have 30,00 nous a Stragine 2004 : Au: 6.000 hours +60,00 2011 + 7, 00-0 2009 +5,000 2012 +4 000 2013 2009 2010 2011 2012 2013 Depreciate Cost SSDOO 135000 3500 7535000 15.000 End of Year Annual Depreciation Depreciation Accumulated Rate - fopen Depreciation Book Value 10% 0 2700 27.000 22.000 2014 21.000 34000 CUCU 204 27.600 81000 9000 2001 2 000 108000 4200 2000 27,000 30000 15000 Deprecation peront Depreciation Depreciation Cuper Unit Book Value Units Activity 8.00.0 7.000 .000 1000 4,000 2013 -Declining balance Book Value Beginning Year 2009 Depreciation Rate Annual Depreciation Expense - Accumulated Depreciation Book Value 2011 2012 2013 109 clepreciabe-cost : 150,000 -15,000-13500 Annual deprecenion Yote - 1001 Hfc in years Annual deprecanon expenic: 13600x20%=2700 Annual deprecation exuente 5 .217

Answer 1

Date	Description	Ref	Debit	Credit
31.12.2011	Cash	Dr	55,000
	Loss on sale of Asset	Dr	14,000
	To Equipment	Cr		69,000
	(As per Straight Line Method)
31.12.2011	Cash	Dr	55,000
	Loss on sale of Asset	Dr	500
	To Equipment	Cr		55,500
	(As per Unit of output method)
31.12.2011	Cash	Dr	55,000
	Profit on sale of Asset	Cr		22,600
	To Equipment	Cr		32,400
	(As per Double Declining method)
Date	Description	Ref	Debit	Credit
01.07.2009	Cash	Dr	85,000
	Loss on sale of Asset	Dr	36,500
	To Equipment	Cr		1,21,500
	(As per Straight Line Method)
01.07.2009	Cash	Dr	85,000
	Loss on sale of Asset	Dr	42,500
	To Equipment	Cr		1,27,500
	(As per Unit of output method)
01.07.2009	Cash	Dr	85,000
	Profit on sale of Asset	Dr	35,000
	To Equipment	Cr		1,20,000
	(As per Double Declining method)

T tables

Straight Line Method

				End of Year
Year	Depreciation cost	Depreciation Rate	Annual Dep Expense	Accumulated Dep	Book Value
2009	1,35,000	20%	27,000	27,000	1,23,000
2010	1,35,000	20%	27,000	54,000	96,000
2011	1,35,000	20%	27,000	81,000	69,000
2012	1,35,000	20%	27,000	1,08,000	42,000
2013	1,35,000	20%	27,000	1,35,000	15,000

Unit of Output Method

Units of Output	Depreciation per unit	5		End of Year
Year	Unit of Activity	Depreciation cost p.u	Annual Dep Exp	Accumulated Dep	Book Value
2009	8,000	5	36,000	36,000	1,14,000
2010	7,000	5	31,500	67,500	82,500
2011	6,000	5	27,000	94,500	55,500
2012	5,000	5	22,500	1,17,000	33,000
2013	4,000	5	18,000	1,35,000	15,000

Double Declining Balance Method

Year	Book value at the year beginning	*Depreciation Rate	Annual Dep Exp	Accumulated Dep	Book Value
2009	1,50,000	40%	60,000	60,000	90,000
2010	90,000	40%	36,000	96,000	54,000
2011	54,000	40%	21,600	1,17,600	32,400
2012	32,400	40%	12,960	1,30,560	19,440
2013	19,440	40%	4,440	1,35,000	15,000

Workings for Question 2

Straight Line

Year	Depreciation cost	Depreciation Rate	Annual Dep Expense/2	Accumulated Dep	Book Value
2009	1,35,000	20%	13,500	13,500	1,21,500

Sale Value	85,000
Closing Book value	1,21,500
Loss on sale of Asset	(36,500)

Unit of Output Method

Year	Unit of Activity	Depreciation cost p.u	First Half	Accumulated Dep	Book Value
2,009	5,000	5	22,500	22,500	1,27,500

Sale Value	85,000
Closing Book value	1,27,500
Loss on sale of Asset	(42,500)

Double Declining Balance Method
Year	Book value at the year beginning	*Depreciation Rate	Annual Dep Exp /2	Accumulated Dep	Book Value
2,009	1,50,000	40%	30,000	30,000	1,20,000
Sale Value	85,000
Closing Book value	1,20,000
Loss on sale of Asset	(35,000)