How to Prepare Provision for Depreciation A/C? Reducing Balance Method

This lesson teaches you How to Prepare Provision for Depreciation A/C under Reducing Balance Method. This provision for depreciation account
tutorial covers all basic of depreciation accounting.

This free video lesson is for the students of Class 11, Class 12, B.COM, BBA, Cambridge IGCSE, GCSE, O Level, As Level, A Level, IB, CBSE, GCE, Ed-excel Accounting Syllabuses, and any other accounting courses. Accounting Celebrity features accounting lessons for students which is a convenient way to learn Accounting.
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How to Prepare Disposal Account | Gain or Loss | Accounting for Depreciation | 0452/21/M/J/23 :    • How to Prepare Disposal Account | Gai...  
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Past Paper: 0452/21/M/J/23, 7707/21/M/J/23, 0985/21/M/J/23
Stalla charges depreciation at 25% per annum, using the reducing balance method. She charges a full year’s depreciation in the year a vehicle is purchased and none in the year it is sold.

On 31 December 2022, Stalla sold a vehicle for $9500. The vehicle had cost $16000 on 1 September 2020.
The balances on Stalla’s ledger accounts at 1 January 2022 included the following.
Motor vehicles $48000
Provision for depreciation on motor vehicles $21000

REQUIRED : Prepare Stalla’s provision for depreciation on motor vehicles account for the year ended 31 December 2022. Balance the account at 31 December 2022 and bring down the balance at 1 January 2023.
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