Accounting – 4.2 Accounting for depreciation and disposal of non-current assets | e-Consult
4.2 Accounting for depreciation and disposal of non-current assets (1 questions)
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Calculation:
- Depreciable Amount: £12,000 (Cost) - £1,000 (Residual Value) = £11,000
- Depreciation Rate: (100% - (Residual Value / Cost)) / Useful Life = (100% - (1,000 / 12,000)) / 5 = (100% - 0.0833) / 5 = 0.9167 / 5 = 0.1833 or 18.33%
- Depreciation Charge: Depreciable Amount x Depreciation Rate = £11,000 x 0.1833 = £2,016.33
Answer: The depreciation charge for the year ended 31st December 2023 is £2,016.33.