Depreciation using the reducing balance method


Question relates to J blog, public accountant, for 6 months ending 31 December 2018

Trial Balance as at 31 December 2018 (extract)

Office Equipment - at cost 65 000
Accumulated Depreciation - Office equip 20 000
Motor Vehicle - at cost 68 000
Accumulated Depreciation - Mot veh 18 000

Adjustment to be made at 31 December 2018

Depreciate office equipment at 25% p.a using the reducing balance method, On 1 November 2018 office equipment with a cost of $5000 (excluding gst) was acquired.

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Accounting Basics: Depreciation using the reducing balance method
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