FRA today - Depreciation charge for the year?

LondonMatt

What did you get? I firstly put down £325 as the adjustment, so the the total for the year was £525 (there was £200 already in the trail balance), but then I changed it to show £325 as the total charge for the year - I think the question stated that there was no other depreciation charged for the year.

Was that wrong? My trail balance still balanced obviously

ccreaven

I made it £525 I hope I'm right (sorry) but I have already established I have made about 5 errors!!

timdunton

I made it £525 too, £325 was for the depreciation on the new equipment, £200 was for the existing equipment.

regards

Tim

MOHMEDSALIM PATEL

Please Do Not Worry

I Have Spoken To My Tutor Straight After I Have Finished My Paper And Asked Her That How Many Mistake Aat Will Allow To Make.

As She Has Advised Me It Should Not Be A Major Mistake Like Liability On Debit And Asset On Credit. If Any Wrong Answer Lead To Another Even Though It A Only A One Mistake As Long As Its On Right Side.

Once Again Please Do Not Worry Too Much Every Thing Will Be Ok.

LondonMatt

timdunton wrote: »

I made it £525 too, £325 was for the depreciation on the new equipment, £200 was for the existing equipment

Yeah, I think you may be right, but I'm sure the question said that no other depreciation was to be charged for the year? I assumed that the £200 was for the equipment that had later been sold - the disposal hadn't been done yet, so the depreciation charge for the later, sold off equipment would have been entered into the records??? Which would have been the £200??

ccreaven

LondonMatt wrote: »

Yeah, I think you may be right, but I'm sure the question said that no other depreciation was to be charged for the year? I assumed that the £200 was for the equipment that had later been sold - the disposal hadn't been done yet, so the depreciation charge for the later, sold off equipment would have been entered into the records??? Which would have been the £200??

I took it that the depreciation left of £200 was for the other equipment, as when we deducted the accumalated depreciation for the disposal there was still accum dep left and also still equipment cost after the 1700 was taken off

timdunton

LondonMatt wrote: »

Yeah, I think you may be right, but I'm sure the question said that no other depreciation was to be charged for the year? I assumed that the £200 was for the equipment that had later been sold - the disposal hadn't been done yet, so the depreciation charge for the later, sold off equipment would have been entered into the records??? Which would have been the £200??

I think that referred to the equipment that had been disposed of, no charge of depreciation in year of disposal, but a years depreciation charge to new equipment.

regards

Tim:001_smile: