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• # 116923
• Fri 06 Jul 2018 12:34 PM

Hi, Quick question.

I am working through the computerised part of the mock exam and need help. Question is relating to depreciation of assets.

Motor Vans are depreciated at 25% per year based on the reducing balance. The figures I have are Motor Vans 68,000 DR and Motor Vans Depreciation 33,184 CR, looking at the answers it should be 8,704. 

Can't work out how I get to that figure.

Paul

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• # 116924
• Sat 07 Jul 2018 11:34 AM

Hello.
I have deleted my comment as per tutor request.
Charlott

Edited at 16 Jul 2018 12:39 PM GMT

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• # 116933
• Wed 11 Jul 2018 10:59 AM

Charlott Gove said:

“Hello.
As it is reducing balance you have to subtract the depreciation from the value, which gives the net bookvalue(NBV), then you take 25% from the NBV and that is the years Depreciation.
Charlott”

 Charlott

Thank you.

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