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Calculate Depreciation for each year.
Accounting
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Question 1: Prepare the contract account for all the years.
Step 1: Calculate Depreciation for each year.
The plant at site values are given at the end of each year. Depreciation is calculated as the opening balance of plant plus new plant issued, less the closing balance of plant at site.
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Year 1:
- Plant issued: N1,000,000
- Plant at site (end of year): N800,000
- Depreciation for Year 1 = N1,000,000 - N800,000 = N200,000
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Year 2:
- Plant brought
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