Dear sir/madame
I am revising for my external exams and I face a problem about provision for depreciation.
A specific example from a manufacturing exercise
1)Motor vehicle at cost - 120000
Provision for depreciation for motor vehicle - 40000
2)Plant and machinery at cost - 386000
Provision for depreciation for plant and machinery - 115800
Depreciation is as follows:
a) Motor Vehicles at 20% on the reduced (diminished) balance
b) Plant and machinery at 15% on cost
My question is: what do I write under the heading factory overheads in the manufacturing account meaning what would the answer be after the depreciation calculations above?
Please help urgently! My exams are appoaching
Thanks a lot!
Mahi
