Help please DFS

jewels.p

Non-Current Assets
Plant - Cost £6,545,000 on 1 Jan 2005
£9,563,000 on 31 Dec 2005

During the year Non-current assets of cost price £2,500,000 were sold

What is the "Purchase of Non-Current Assets" figure that goes in the CashFlow Statement?

I thought it was £3,018,000 but am not sure now. Do I have to include the £2,500,000

Any tips?

Steve Collings

Hi,

Your cost b/fwd = 6,545. We have disposed of assets costing 2,500 so this gets deducted. Our costs c/fwd to the next year = 9,563 so the "balancing figure" = additions of 5,518.

It is difficult to draw a 'T' account on the forums, but here is another way:

Cost b/fwd = 6,545
Disposed of = (2,500)
Cost c/fwd = (9,563)
Added in yr = 5,518

Kind regards
Steve

Criggers

If I am right it might be worth going into this a little deeper as it comes up on the cash flow questions. It gives you an opening and closing PPE figure which are both NBV and you have to calculate investment for the year.

But that will probably be the next question

jewels.p

Criggers wrote: »

If I am right it might be worth going into this a little deeper as it comes up on the cash flow questions. It gives you an opening and closing PPE figure which are both NBV and you have to calculate investment for the year.

But that will probably be the next question

It's for a Cashflow I am trying to do it so not sure what you mean by going into it a little deeper?

jewels.p

Steve Collings wrote: »

Hi,

Your cost b/fwd = 6,545. We have disposed of assets costing 2,500 so this gets deducted. Our costs c/fwd to the next year = 9,563 so the "balancing figure" = additions of 5,518.

It is difficult to draw a 'T' account on the forums, but here is another way:

Cost b/fwd = 6,545
Disposed of = (2,500)
Cost c/fwd = (9,563)
Added in yr = 5,518

Kind regards
Steve

I cant believe I never thought to do it in a T-Account and I am at Technician Level what hope have I got! :blushing: