Problem
A business has a financial year end of 31 December. A van is bought for $ 50000 on 1st January 2009. It is to be depreciated at the rate of 25 % per annum using reducing balance method
Task
A. Calculate the depreciation of van for 2009, 2010, 2011.
B. Draw up the accumulated provision for depreciation van account for 2009, 2010 and 2011.
C. Draw the income statement extract from incomes and expenses for the year ended 31 December 2009, 2010 and 2011.
D. Draw the balance sheet extract as at 32 December 2009, 2010, 2011.