Answer to Question #79836 in Finance for Like Heron

Question

2)

On the 1st of July 2012 an organisation purchased a vehicle for company use. The price was $60,000 and has a useful life of six years. It was depreciated using the straight line method and the vehicle was traded in for its book value on the 30th of June 2016. Complete the calculations and provide the details in this table.

Ledger account

Accumulated deprecation

Book value

Date

Details

Debit

Credit

Balance

Debit

Credit

Balance

1/7/12

Purchase

30/6/13

Depr’n

30/6/14

Depr’n

30/6/15

Depr’n

30/6/16

Trade in