depreciation / stock

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited 10:32AM in AAT student discussion
I didn't know if I had to take 300.00 from the 1,200.00 to do the depreciation for the old asset????

And how about the stock.... to get a closing stock... I have never seen any exercise like that ???

It was hard !!! :cry:
ยซ1

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    tht was hard bout the stock, i just used the values in the 1st column, they were the lowest!!
    :s
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I had the same problem with this. Off to see the tutor this afternoon so will let you know if I get to know how to do it!! Nasty one that!! :cry:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I thought we could only account for physical stock so I used the ร‚ยฃ1980 figure. But seeing as I completely messed up the rest of section 1 I'm sure another mistake wont make much difference :cry:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I only added the physical stock and the stock already purchased but not yet received as it had been paid for. Is that wrong? :roll:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    It cost 1200 then you worked out nbv and got the depraciation figures from that, which were them taken off acc. depreciation to work out new acc. depreciation
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I not sure if I am correct, but I took the normal stock figure and add on the stock that is already sold at cost price (ร‚ยฃ1980 + ร‚ยฃ90) as I guessed that if stock is in transit, you assume that it is still in the place where the journey start (from considatied account in unit 7) plus the fact that the sold stock is still in the stockroom.

    I not 100% I am correct, but everything elser in that section went well
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Oh god I'm panicing, I got the Depreciation charge at 1050 on my tb, the rent 4800 and the selling exps at 2320,

    Does that sound familier to anyone?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I got depreciation charge to ร‚ยฃ1050 too. Rent was ร‚ยฃ5000 can't remember the other one!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    :D i got ร‚ยฃ1050 ร‚ยฃ4800 and I think ร‚ยฃ2320.

    The part ex I ignored when calculating NBV trick question I thought. I new we would get disposals as we all get stuck on them. The stock question again took the lowest value thats what ssap 9 says so hopefully if wrong not many points on that question lost.

    In all the past papers I have never seen questions like those before.

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I have got the same answers - Depreciation ร‚ยฃ1050. Rent ร‚ยฃ4800 and selling expenses ร‚ยฃ2320.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    My depreciation was 1112.00

    700.00 for new asset
    412.00 for old asset

    Another one wrong !!!! :cry:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    :roll: Boy did I make a hash of the stock! I was so confused that I can't even remember what I put! I'd never seen anything like it before and it was a really nasty question. I guess it was about 3 or 4 marks, too. Oh well, too late now.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    How did you get depreciation at 1050.00???

    Please tell me !!!!!

    :roll:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I am the same I did not get 1050??
    I think from memory it was something like ร‚ยฃ693 for the Acc Depn of the Disposal Item with a NBV of ร‚ยฃ507.

    The stock question totally puzzled me as well
    I balanced my trial balance 1st before putting the stock figure, so just guessed in the end which figures to use!!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I did Equipment cost at beginning of year - Disposal + Cost of new equipment. Then took Depreciation from start of year and minused disposal depreciation. Took depreciation off cost and multiplied by 35%.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Thats how I worked out the depreciation :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Oh good :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    It doesn't matter what stock figure you use, the closing stock go on both side of the balance sheet (one for the trading account (credit) and one for the balance sheet (debit

    If the trial balance doesn't balance, you should first check your answer and if you can't find it, put it in the suspense account (this way you would only get penalised for whatever error you done error in the section once)

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Thank you very much !!!!

    I know what I did ........ :x

    I depreciated 1 more year.... I can not believe I did that.......!!!!!!!!!!!!!!!!!!!!!!

    Now its too late...
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    please could somebody tell me the answer Equipment accumulated depreciation is a asset, liability or capital.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Depreciation comes in assets on balance sheet.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Thank you very much
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock
    wendylg53 wrote:
    Depreciation comes in assets on balance sheet.

    But is a credit balance not a debit balance (as assets normally are).
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    Ah yes, but you have to minus it from your cost of asset to give net book value to add to current assets :D
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock
    andypandy wrote:
    Ah yes, but you have to minus it from your cost of asset to give net book value to add to current assets :D

    Or shall we say either non current assets or fixed assets (depending on international or UK standards) :lol:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    I was a bit confused.... But I did at my exam ......... Acc. Depreciation as an asset (reducing balance) :)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock
    wendylg53 wrote:
    I did Equipment cost at beginning of year - Disposal + Cost of new equipment. Then took Depreciation from start of year and minused disposal depreciation. Took depreciation off cost and multiplied by 35%.

    Updated Cost of Equipment: I took
    Original cost +
    Purchase     of new equipment (it was in the bank summary)

    less Disposal    !
    It was the same task as December 2003 exams and I remember it was a very tricky one!
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    :shock: Well, I thought the paper was a nightmare! Especially section 1, I didn't have a clue about most of it, got completely confused with the first two questions about the accruals/prepayments/rent/exps accounts. The disposal one was awful and so was the stock...I think I got my AAT no correct on the front page though....do we get a mark for that??

    My TB was ร‚ยฃ215 different so I stuck that in a suspense account. Section 2 was much easier (unless I did it all wrong of course!).

    I think I failed for sure and I must say I found the paper far far more difficult that the past papers, especially the Dec 2005 one which was so much easier in section 1.

    Life's just isn't fair.....when are the re-sits???????????????? :?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock

    If any consolation I got ร‚ยฃ693 for the acc depreciation with the nbv being ร‚ยฃ507.

    The stock figure totally gazumped me, so I guessed, which I surely have got wrong. Will that make a huge difference to whether I pass or not?? :shock:
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    Re:depreciation / stock
    mrbinx wrote:
    If any consolation I got ร‚ยฃ693 for the acc depreciation with the nbv being ร‚ยฃ507.

    Me too I had these figures!

    Does anyone knows when the paper will be online? I cant wait to check it out!

Categories

Privacy Policy