Gce Model Questions Vol1 2018 Financial Accounting Question 13

The Machinery account had an opening balance of \(15{,}000\) (debit). During the year the following transactions were posted to this account: - Purchase of new machinery on 10 March: \(5{,}200\) - Purchase of new machinery on 25 July: \(3{,}800\) - Sale of machinery on 30 September for \(4{,}500\). The original cost of the sold machine was \(6{,}000\) and its accumulated depreciation at the date of sale was \(1{,}200\). - Depreciation expense for the year is charged at 10 % of the opening balance. - At year‑end a further depreciation of 5 % is charged on the balance of the Machinery account after posting the above transactions but before this additional depreciation. Calculate the closing balance of the Machinery account at the end of the year.