Joseph is drawing up his budgets to present to the bank in support of his business loan application for his new business which is starting up on 1 January 2020. Joseph's capital expenditure budget shows planned expenditure of £45,000 on new plant and machinery in January 2020, £24,000 on a new delivery van in March 2020 and £18,000 on a new computer system in June 2020. Joseph depreciates all his non-current assets on the straight line basis. Computers and computer systems are depreciated over three years with zero estimated residual value, delivery vans over 4 years and plant and machinery over 5 years. Delivery vans and plant and machinery are estimated to have a residual value of 20% of their original cost. What is Joseph's budgeted depreciation charge in the budgeted statementof profit or loss for May 2020?

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The Answer of Joseph is drawing up his budgets to present to the bank in support of his business loan application for his new business which is starting up on 1 January 2020. Joseph's capital expenditure budget shows planned expenditure of £45,000 on new plant and machinery in January 2020, £24,000 on a new delivery van in March 2020 and £18,000 on a new computer system in June 2020. Joseph depreciates all his non-current assets on the straight line basis. Computers and computer systems are depreciated over three years with zero estimated residual value, delivery vans over 4 years and plant and machinery over 5 years. Delivery vans and plant and machinery are estimated to have a residual value of 20% of their original cost. What is Joseph's budgeted depreciation charge in the budgeted statementof profit or loss for May 2020?

Joseph Is Drawing Up His Budgets to Present to the Bank