Accounting – 4.2 Accounting for depreciation and disposal of non-current assets | e-Consult

ABC Company uses the reducing balance method to depreciate a machine costing £20,000. At the beginning of Year 1, the book value is £12,000. At the end of Year 1, the depreciation expense is £4,000. Prepare the ledger account for Depreciation Expense and the corresponding journal entry.