Financial Statements - Practice CBT 1 - Help Please!

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stockport
stockport Registered Posts: 15 Dedicated contributor 🦉
I am attempting practice CBT 1 on My AAT. I'm completely confused by the first question (Pine Ltd) :confused1:. I am baffled how the depreciation figure of £6000 has been worked out. The latest figure I have got is £5300. Please could someone explain how the AAT have arrived at a figure of £6000. I wish they would include notes on how they arrive at the answers to practice questions.

Many thanks.

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  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Dear stockport

    Are you ready to be trying out the sample exams?
    If not, you might fall into the trap of trying to work through rather than using them to test you.

    Buildings are depreciated on a straight line basis
    Of the total value for land and buildings, £40,000 is depreciable at 5% (£2000)

    and Plant and Equipment has a balance of £16,000 depreciable at 25% (£4000)

    I hope this helps, but do think about whether you are attempting this sample before you are ready.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • stockport
    stockport Registered Posts: 15 Dedicated contributor 🦉
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    Hi Sandy,

    Many thanks for your quick reply and explanation. I know where I went wrong now, I deducted the accumulated depreciation before working out 5%! In terms of being ready for practice exams I have my exam coming up at the end of June so trying to get as much practice in as possible.

    Many thanks,

    Stockport
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