Reference no: EM131538011

Question: On 31st December, 1961, a limited company owned machinery which appeared in its balance sheet drawn up as on that date as "at cost £97,300 less aggregate depreciation £51,770." During 1962 the company bought new machinery at a cost of £12,400 and sold old machinery which had originally cost £5,800 and in respect of which it had provided £4,900 (part of the £51,770 above) depreciation. The additional depreciation provided in respect of the year ended 31st December, 1962, in respect of all the machinery in use at that date was £9,780.

Show how the machinery should appear in the company's Balance Sheet as on 31st December, 1962, supposing that:

(a) the company wishes to disclose to its members information regarding additions to and disposals of machinery,

(b) no more than the minimum statutory information is to be given.