PEV _ December '03
Jimmyboy1888
Registered Posts: 32 Regular contributor ⭐
Hi,
I dare say I'm being totally dumb but, can someone please explain why depreciation is calculated at 1,000,000.00 (Task 2.2 (i) ) ?
I can't see any note of a residual value, useful life or, when the company was incorporated, in order to calculate 1 year's depreciation ?
Why not 4 years @ 500,000, or any other divisor of the 2,000,000 accumulated depreciation ?
Thanks
Jim
I dare say I'm being totally dumb but, can someone please explain why depreciation is calculated at 1,000,000.00 (Task 2.2 (i) ) ?
I can't see any note of a residual value, useful life or, when the company was incorporated, in order to calculate 1 year's depreciation ?
Why not 4 years @ 500,000, or any other divisor of the 2,000,000 accumulated depreciation ?
Thanks
Jim
0
Comments
-
At 30 Nov 2003 the annual charge for the y/e 30/11/03 was £1 million and the accumulated balance in the balance sheet was £2 million.
Task 2.2 asks for the year ending 30 Nov 2004 (stating on 1 Dec 2003)
Bullet 8 under the 30 Nov 2003 Balance Sheet says Depreciation is based on the straight line method
So with the 3 pieces of evidence, the annual charge will be £1 million per year.Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
Nice one Sandy, thanks.
Had a feeling I might feel silly !0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership