Financial statements cbt
michaelar25
New MemberRegistered Posts: 12
Panic!!!!!
Im finding this really hard!
How do you get the Dist cost & Admin cost on task 1.1 iv been trying for ages and just cant seem to get it!
Im finding this really hard!
How do you get the Dist cost & Admin cost on task 1.1 iv been trying for ages and just cant seem to get it!
0
Comments

Hi michaelar25
Not sure which bit you're stuck on, so hope this helps.
Land and buildings at cost are £81,778
Land of £41,778 is not depreciated, that leaves buildings of £40,000
£40,000 x 5% straight line = £2,000 depreciation charge
Plant and equipment at cost are £24,000
£24,000  £8,000 accumulated depreciation = £16,000
£16,000 x 25% reducing balance = £4,000 depreciation charge
That gives us a total depreciation charge for the year of £6,000.
£6,000 is then apportioned to:
Cost of sales 60% = £3,600
Distribution costs 30% = £1,800
Admin expenses 10% = £600
Distribution costs:
£ 9,977 from TB
£ 1,800 depreciation
£ 160 accrual
£11,937 TOTAL
Admin expenses:
£6,755 from TB
£ 600 depreciation
£ 24 bad debt written off
£7,379 TOTAL
Hope that makes sense.0 
thank you, that all makes sense now! I think when you look at something for so long you just end up getting lost0

No problem and glad it made sense!0