# Depreciation Question Watch

1. Hey guys, this looks really simple but I haven't done reducing balance in a while and I can't figure it out.

For the Y/E 31st August 2012:

Cost:
As at 1st September 2011: 6545
As at 31st August 2012: 6952

Depreciation:
As at 1st September 2011: 5736
Charge for the year: 307
As at 31st August 2012: 6033

Net book value:
As at 31st August 2012:919
As at 31 August 2011: 819

Depreciation is on a reducing balance at 25%. How did they work out the charge and depreciation? Thanks

Edit: No worries, figured it out, I cant figure out how to delete this post so yehh.
2. (Original post by Loafing.Charizard)
Hey guys, this looks really simple but I haven't done reducing balance in a while and I can't figure it out.

For the Y/E 31st August 2012:

Cost:
As at 1st September 2011: 6545
As at 31st August 2012: 6952

Depreciation:
As at 1st September 2011: 5736
Charge for the year: 307
As at 31st August 2012: 6033

Net book value:
As at 31st August 2012:919
As at 31 August 2011: 819

Depreciation is on a reducing balance at 25%. How did they work out the charge and depreciation? Thanks

Edit: No worries, figured it out, I cant figure out how to delete this post so yehh.
I get 304 or 307

I would approach as 6952-5736= 1216 @ 25% =304
But 819 +407=1226 @ 25% =306.5

There is a mistake in the question as.6545-5736=809 not the 819 as given.

I suspect mistake by question setter is the issue, cannot have two answers.

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