Question

Moons Ltd purchased machinery costing $11,700 plus installation costs of $300 on 1 January 2011 for...

Moons Ltd purchased machinery costing $11,700 plus installation costs of $300 on 1 January 2011 for cash. Estimated useful life was 9 years with no salvage value.

On 31 December 2013, the useful life of the machinery was adjusted to 3 years from the date of purchase.

(using the straight line method of depreciation)

Required:

Provide the journal entries relating to this machinery for 2011, 2012 and 2013, by filling in the blanks below.

Solution:

Date

Particulars

Dr ($)

Cr ($)

01/01/11

Acquisition of machinery

31/12/11

Annual depreciation =

31/12/12

  

Annual depreciation

31/12/13

Annual depreciation =

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