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WoodCo Ltd., a manufacturer of school desks and cabinets, commenced trading from 1st January 2010, and its financial year in line with the calendar year. The company uses general-purpose equipment to manufacture its products. At start-up, WoodCo had the following assets: . Plant and machinery 320,000 185,000 120,000 100,000 Motor Vehicles Fixtures & Fittings . IT system The company is considering how it might calculate depreciation on these assets for the financial year just ended. Management is anxious to ensure the accounts reflect a reasonable valuation of its fixed assets at each year end Required: (A): Write a report for management at WoodCo suggesting a system of depreciation for each asset which might reflect fair valuation, explaining your rationale (50 Marks) (B): Using your recommended methodology from above, show the Balance Sheet entries as at 31 December for each of the financial years 2010, 2011 and 2012. (Assume no purchase or disposal of Fixed Assets during the period). WoodCo Ltd., a manufacturer of school desks and cabinets, commenced trading from 1st January 2010, and its financial year in line with the calendar year. The company uses general-purpose equipment to manufacture its products. At start-up, WoodCo had the following assets: . Plant and machinery 320,000 185,000 120,000 100,000 Motor Vehicles Fixtures & Fittings . IT system The company is considering how it might calculate depreciation on these assets for the financial year just ended. Management is anxious to ensure the accounts reflect a reasonable valuation of its fixed assets at each year end Required: (A): Write a report for management at WoodCo suggesting a system of depreciation for each asset which might reflect fair valuation, explaining your rationale (50 Marks) (B): Using your recommended methodology from above, show the Balance Sheet entries as at 31 December for each of the financial years 2010, 2011 and 2012. (Assume no purchase or disposal of Fixed Assets during the period)

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