briefly describe the purpose of depreciation in formulating accounting statements and illustrate TWO widely used...
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Accounting
briefly describe the purpose of depreciation in formulating accounting statements and illustrate TWO widely used methods of calculating it, together with the circumstances in which each might be appropriate.
a company depreciates its plant at the rate of 25% per annum straight line method for each month of ownership
2016 bought plant costing K 2 600 000 on 1 January
bought plant costing K 2 100 000on 1 October
2018 bought plant costing K 2 800 000 on 1 September
2019 sold plant which had been bought for K 2 600 000 on 1 January 2016 for the sum of K 810 000 on 31 August 2019
from the above details prepare for each of the years 2016, 2017, 2018 and 2019
the plant account
the provision for depreciation account
the plant disposal account
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