Trish runs a boxing club.She installed a new boxing ring at a cost of £25 000 on 1 April 20X1, and decided to depreciate the new ring at a rate of 20% each year on the reducing balance basis.What is the depreciation charge in respect of the boxing ring for Trish's accounting year ended 31 March 20X4?

Question

Quizplus · Accepted Answer

Depreciation for the year ended 31 March 20X2 = £25,000 x 20% = £5,000Depreciation for the year ended 31 March 20X3 = (£25,000 - £5,000) x 20% = £4,000Depreciation for the year ended 31 March 20X4 = (£25,000 - £5,000 - £4,000) x 20% = £3,200

Trish Runs a Boxing Club