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 2014 is shown below:

PLANT AND MACHINERY -COST

		$			$
2013 OCT 1	Balance	450,000	2014 JUNE 30	Transfer disposal account	36,000
2013 APR 1	CASH PUCHASE OF PLANT	32,000	2014 SEP 30	BALANCE	446,000
		482,000			482,000

What should be the depreciation charge for plant and machinery (Excluding any profit or loss on the disposal) for the year ended 30 September 2014?

SUGGESTED SOLUTIONS

DATE	COST	MONTHS	RATE	DEP
2013 OCT 1	450,000	6/12	0.2	45,000
2014 APR 1	482,000	3/12	0.2	24,100
2014 JUNE 30	446,000	3/12	0.2	22,300
				91,400

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