Question

I have a question and I need to prepare the final accounts. In the additional information one of the questions is as follows:

Machinery is depriciated at 10% per annum using the Straight Line Method, whilst Computer Equipment is depreciated at 15% per annum using the Reducing Balance Method.

In the trial balance which was for the financial year that ended 30th November 2000,

Machinery was £211,000
Computer Equipment was £34,890
Provision for Depreciation - Computer Equipment was £24,150
Provision for Depreciation - Machinery was £75,680

Can anyone please explain what I have to do?

Answer 1

You have not stated a question, so I don't know what you have to do. I also don't know what you mean by "provision for" the two items. If the expenditures in one year for the two items were:
Machinery: £211,000
Computer Equipment: £34,890,
then the annual depreciation amount in the first year would be £21,1000 (10%) for machinery and £5,234 (15%) for computer equipment. Usually purchases made late in the tax or fiscal year use a prorated reduced depreciation the first year.