Illustrations of changes in accounting estimates, Financial Accounting

Illustrations of Changes in accounting estimates

B Ltd., bought an item of plant at a total cost of £100,000. The estimated useful life commencing from 1st January 2000 was 10 years.  At the start of the 4th year it was discovered that the actual estimated useful life of the plant was 8 years and not 10 years.

Required: Compute the depreciation charge for each of the eight years on the plant.

Initial depreciation         = 100,000


                                    =£10,000 each for 3 years


Net Book Value at beginning of year 4

= 10,000 x 3 years = 30,000

= 100,000 – 30,000 = 70,000


depreciation  for rest of the 5 years

= 70,000


=£ 14,000

Posted Date: 12/12/2012 12:55:04 AM | Location : United States

Related Discussions:- Illustrations of changes in accounting estimates, Assignment Help, Ask Question on Illustrations of changes in accounting estimates, Get Answer, Expert's Help, Illustrations of changes in accounting estimates Discussions

Write discussion on Illustrations of changes in accounting estimates
Your posts are moderated
Related Questions
IDEAL MINORITY INTEREST The minority interest ideally is entitled to the profit after tax in minority interest. However due to consolidation, the profits of the subsidiary compan

Calculation of Efficiency ratios  -                     2008 2009 2010 M Net Sales

Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan. Items                 A           B

Q. What is Permanent Negotiating Machinery? Two Federation of Union All Indian Railway men's federation (AIRF) & National Federation of Indian Railway (NFIR) men have been reco

What is the function of balance sheet

On December 1, 2013, Colonel Wilder borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivable as collateral. Additionally, Colonel Wilder was charged a finance

a company recorded for the past year a sales of 500,000 and an operating incme of 40,000. What is the turnover needed to earn in order to achieve an ROI of 20%

Resolution For Voluntary Winding Up A company may be put into voluntary liquidation: 1) By ordinary resolution: where any period fixed for the duration of the company has ex

what is the reason of incorporating 1. corporate governance statement 2. audit committee statement 3. internal audit statement into annual reports?

Q. What is Contractor Ledger? Accounts relating to contractors should be kept as personal accounts in contractor's ledger and a separate folio should be opened in the Contracto