Financial Statements Paper 1 Question 1.1

James Patterson

Hi all,

I don't understand how the figure of £6000 depreciation is arrived at to split into the 3 working sections.

Can someone please explain where the depreciation is from.

James Patterson

Anyone?

crispy

Not that I may be able to help, but can you show or link to the full question ?

James Patterson

http://www.aat-interactive.org.uk/elearning/new/FNST_practice_CBT_1_popups/index.html

Its just the first financial statements paper. question 1.1.

crispy

Ok, lets have look...

Land & Building @ Cost per TB 81,778
Less: Cost of Land (41,778)
Cost of Building 40,000
Depn @ 5 % SL = 2,000

Plant & Equip @ Cost B/f 24,000
Plant & Equip Accum Depn B/f (8,000)
NBV 16,000
Depn @ 25 % RB = 4,000

Total Depn charge for Yr = 6,000

Is this ok ?

James Patterson

Thats brilliant, thankyou crispy

crispy

Happy to Help, you must be very close to now completing AAT - Good luck for the finals !