hey intruder ...
in the first they hav the motor vehicles.... each costing 20000.
the first year the depreciate each machine by 20% so it becums 12000 total depreciation
the next year one of these machine has been sold.... so for tht year we are left with two machines each having a net book value of 16000 each
as the depreciation is to be done on reducing balance method we apply 20% on the net book value
therefore 20% of 16000 = 3200 (this wud be for one vehicle)
as there are two vehicles left u do 3200 x 2 = which gives u 6400 .. which u transfer to P&L for tht particular year
Hope This helps u
