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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1. Calculate the depreciation for 2024:
Depreciable Amount at 1st January 2024 = £35,000 - £5,000 = £30,000
Depreciation for 2024 = (Depreciable Amount at 1st January 2024) x (Depreciation Rate)
Depreciation Rate = 1 / Useful Life = 1 / 10 = 10%
Depreciation for 2024 = £30,000 x 10% = £3,000
Ledger Account: Depreciation Expense
| Depreciation Expense | |||
| Date | Description | Debit (£) | Credit (£) |
| 1 January 2024 | Opening Balance | 0 | |
| 31 December 2024 | Depreciation Expense - 2024 | 3,000 | |
| Closing Balance | 3,000 |
Journal Entry:
Debit: Depreciation Expense £3,000
Credit: Accumulated Depreciation £3,000