[Ben123]

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

[Curlyben]

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