Shane Engineering Ltd. Worked out an estimated expenditure of $ 1,20,000 over a period of 8 years on repairs of machinery. The company decided to raise a 'Provision for Repairs and Renewals Account by debiting Profit & Loss Account with a uniform amount every year. The actual expenditure on repairs during the first four years amounted to $ 5,200, $ 12,900; $ 10,700 and $ 16,800. Prepare Provision for Repairs and Renewal Account stating in the footnote how the figures would appear in Balance Sheet and also for treatment in computing of managerial remuneration.

Shane Engineering Ltd. Worked out an estimated expenditure of $ 1,20,000 over a period of 8 years on repairs of machinery. The company decided to raise a 'Provision for Repairs and Renewals Account by debiting Profit & Loss Account with a uniform amount every year. The actual expenditure on repairs during the first four years amounted to $ 5,200, $ 12,900; $ 10,700 and $ 16,800. Prepare Provision for Repairs and Renewal Account stating in the footnote how the figures would appear in Balance Sheet and also for treatment in computing of managerial remuneration.

Name: Shane Engineering Ltd. Worked out an estimated expenditure of $1,20,0
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Description: Shane Engineering Ltd. Worked out an estimated expenditure of $1,20,000 over a period of 8 years on repairs of machinery. The companydecided to raise a 'Provision for Repairs and Renewals Account bydebiting Profit & Loss Account with a uniform amoun

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4PB: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...

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