The following is an extract of balances for a company for the year: Heat and light paid during the year : 22,000 £ Rent paid during the year : 27, 000£ Non-current assets (at cost) : 80 , 000£ Sales for the year : 850, 000£ The gross profit margin for the year has been calculated as 10%. Accumulated depreciation on the non-current assets at the start of the year was £20,000. Depreciation is to be calculated at 25% on the reducing balance method. At the end of the year adjustments also need to be made for heat and light accrued of £4,000, and rent prepaid of £2,500. Calculate the depreciation expense for the year; the net book value of the non-current assets at the end of the year; and the net profit for the year.
The following is an extract of balances for a company for the year:
Heat and light paid during the year : 22,000 £
Rent paid during the year : 27, 000£
Non-current assets (at cost) : 80 , 000£
Sales for the year : 850, 000£
The gross profit margin for the year has been calculated as 10%. Accumulated
Depreciation is to be calculated at 25% on the
Calculate the depreciation expense for the year; the net book value of the non-current assets at the end of the year; and the net profit for the year.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
