Accruals + Prepayments - ENGLIGHTEN ME PLEASE?!
AngelDust
Registered Posts: 30
Hi everyone,
Q: An item of computer equipment originally purchased for £2,700 and with a carrying amount of £675 has been sold.
The loss on disposal was £150. A cheque for the proceeds was banked.
How much did the business receive for the computer equipment? Ignore VAT.
A: £525
My question is how did the answer come to £525? I can't work it out!
Thanks!
Q: An item of computer equipment originally purchased for £2,700 and with a carrying amount of £675 has been sold.
The loss on disposal was £150. A cheque for the proceeds was banked.
How much did the business receive for the computer equipment? Ignore VAT.
A: £525
My question is how did the answer come to £525? I can't work it out!
Thanks!
0
Comments
-
The NBV of the equipment was £675- so this is basically what it is worth now, the loss on the disposal was £150 in the end, therefore the difference would be the amount of money received for the computer equipment.
When you have the answer you can work it back as £675 NBV less sale proceeds £525 equals the loss of £150.
Nothing to do with accruals/prepayments though.
B xx1 -
Lol thanks @BeccaLouJ9 I think I was staring at the question too long and my brain had a meltdown - apologies for the misleading title0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 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