Q1 Calculation of Depreciation under following methods a).

   

Added on  2023-04-21

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Q1 Calculation of Depreciation under following methods
a) Straight Line Method
Cost of Truck 65000
Residual Value 5000
Depreciable Value 60000
Life of Truck 6
Depreciation for each year 1000
b) Sum of Digits Method
Year Remaining Estimate Life SYD Annual Depreciation
1 6 0.285714286 17143
2 5 0.238095238 14286
3 4 0.19047619 11429
4 3 0.142857143 8571
5 2 0.095238095 5714
6 1 0.047619048 2857
21 60000
c) Declining Balance Method
Calculation of Depreciation Rate
S Salvage value
C Cost of assets
Q1 Calculation of Depreciation under following methods a)._1
Year Opening Rate Depreciation Closing
1 65000 27 17420 47580
2 47580 27 12751 34829
3 34829 27 9334 25495
4 25495 27 6833 18662
5 18662 27 5001 13661
6 13661 27 3661 10000
d) Units of Production Methods
Year Kilometers Depreciation
2012 28000 6829
2013 34000 8293
2014 42000 10244
2015 55000 13415
2016 68000 16585
2017 19000 4634
246000 60000
Q2 Journal Entries in the books of Petersen LTD.
1 Revaluation of Residential Land & Factory Land
Debit Residential Land 100000
Debit Revaluation Reserve 100000
Credit Factory Land 200000
Q1 Calculation of Depreciation under following methods a)._2

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