Financial statements cbt

michaelar25michaelar25 New MemberPosts: 12Registered
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!

Comments

  • PaisleyPaisley Feels At Home Posts: 93Registered
    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.
  • michaelar25michaelar25 New Member Posts: 12Registered
    thank you, that all makes sense now! I think when you look at something for so long you just end up getting lost
  • PaisleyPaisley Feels At Home Posts: 93Registered
    No problem and glad it made sense!
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