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Economics, Accounting & Business: Post your doubts here!

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Again :O
Question 24
 
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Hi can someone please explain to me why in this paper, it's November 2010 42 question 1

They have deducted vehicles from provision for depreciation when making income statement but they never deducted building and machinery from their respective provision for depreciation figures

This is what it says for them in the additional information: depreciation is to be provided at the following rates : buildings at 2% per annum on cost, machinery at 10% per annum on cost and vehicles at 40% annum reducing balance

Did they deduct because it's the reducing balance ? Please clear this confusion for me
 
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