Machinery cost £40,000 with accumulated depreciation of £16,000. Depreciation is charged at 25% (reducing balance). Calculate the Depreciation Expense and Accumulated Depreciation for the current trial balance.

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TheoryPractice · Accepted Answer

Exp £6,000, Acc £22,000. Net Book Value (NBV) = $$$40{,}000 - 16{,}000 = 24{,}000$$$. Expense = $$$24{,}000 \times 25\% = 6{,}000$$$. New Accumulated Depreciation = $$$16{,}000\ (\mathrm{b/f}) + 6{,}000 = 22{,}000$$$.

Machinery cost £40,000 with accumulated depreciation of £16,000. Depreciation is charged at 25% (reducing balance). Calculate the Depreciation Expense and Accumulated Depreciation for the current trial balance.

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