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Question

the trial balance as at 31 july 2007 has 
buildings at cost  £320
accumulated depreciation £108.08
motor vehicles £312
accumulated depreciation £56
equipment at cost £60
accumulated depreciation 36 

the additional information says 
depreciate buildings by 2% of cost, motor vehicles by 20% of cost and equipment by 10% cost

Too many depreciation figures which one do i include in the income statement and the balnce sheet

Don G · Accepted Answer

Your trial balance shows only Balance Sheet accounts. Depreciation Expense will be - 

Bldgs, at 2% of 320
Vehicles, at 20% of 312
Equipment, at 10% of 60

For each asset, DR Depreciation Expense and CR Accum Depreciation

Help with this part of Financial Accounting?

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