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Richard runs a small publishing business. He buys a new XP27 printing machine on 1 January 2021 for £100,000 which he expects to use for five years. He predicts that the machine will then have a resid...
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A photocopier was bought for £32,000. It is predicted to be used for four years, and then traded in for £10,000. Show the calculations of the figures for depreciation for each year using (a) The strai...
See AnswerQ: A piece of equipment originally cost £80,000. It
A piece of equipment originally cost £80,000. It is expected to be used for five years and then sold for £800. Show your calculations of the amount of depreciation each year using (a) The reducing bal...
See AnswerQ: A bus is bought for £60,000. It will
A bus is bought for £60,000. It will be used for four years, and then sold back to the supplier for £15,000. Show the depreciation calculations for each year using (a) The reducing balance method at 3...
See AnswerQ: Vinny purchased some new equipment on 28 February 2016 for £240
Vinny purchased some new equipment on 28 February 2016 for £240,000. Vinny’s policy is to depreciate equipment at 30% per year using the reducing balance method. He calculates a full year’s charge in...
See AnswerQ: Fast Response is a business delivering goods to customers. The following
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See AnswerQ: The owner of a small business selling and repairing cars which you
The owner of a small business selling and repairing cars which you patronise has just received a copy of his financial statements for the current year. He is rather baffled by some of the items and as...
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Danielle is a sole proprietor and you are given the following information relating to her business: Additional information: Required: Prepare an income statement for Danielle’s bus...
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The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader. The following additional information as at 31 May 2019 is available: (a) Rent is accrued by £2...
See AnswerQ: Danielle is starting a business. Before starting to sell anything,
Danielle is starting a business. Before starting to sell anything, she bought fixtures for £4,100, a van for £5,950 and an inventory of goods for £3,620. Although she has paid in full for the fixtures...
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