A company's policy is to charge depreciation on plant and machinery at 20% per year on cost, with proportional depreciation
for items purchased or sold during a year.
The company's plant and machinery at cost account for the year ended 30 September 20X3 is shown below.PLANT AND
MACHINERY - COST
20X2???????????????????????????????????????????????????????? ???? ??$??????????????????????????????????????????? 20X3?????????????????????? ????????????????????????????? ? ?$
1 Oct 20X3?????????????????? ?? Balance???????????????? 200,000???????? 30 Jun Transfer disposal account?30Sep Balance???? ?40,000
??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? 210,000
1 Apr????????????????????Cash-purchase of plant??? 50,000
?????????????????????????????????????????????????????????????????????250,000??????????????????????????????????????????????????????????????????????????????????????????????250,000
What should be the depreciation charge for plant and machinery (excluding any profit or loss on the disposal) for the year
ended 30 September 20X3?