AAT Level 3 Accounts Prep Exam
AliceHenley93
Registered Posts: 14
Hello,
I'm wondering if anyone is able to help me. I am sitting my Accounts Prep exam next Friday 05/08/16.
I seem to be fine with the practise assessments other than the recording non-current asset in the general ledger.
The accumulated depreciation account postings using the diminishing method, the question is below:
- On 01/01/13 the business part exchanged an old machine for a new one with a list price of £3,500. A cheque for £1,000 was paid in full and final settlement and this amount has already been entered in the cash book.
- The old machine cost £4,000 on 01/01/11.
- The business's depreciation policy for machinery is 20% using the diminishing balance method.
The correct answer for the accumulated depreciation is £1,440. Can someone please tell me how this is right? I have tried every way possible and I cant come back to this amount.
Thank you!!
Alice
I'm wondering if anyone is able to help me. I am sitting my Accounts Prep exam next Friday 05/08/16.
I seem to be fine with the practise assessments other than the recording non-current asset in the general ledger.
The accumulated depreciation account postings using the diminishing method, the question is below:
- On 01/01/13 the business part exchanged an old machine for a new one with a list price of £3,500. A cheque for £1,000 was paid in full and final settlement and this amount has already been entered in the cash book.
- The old machine cost £4,000 on 01/01/11.
- The business's depreciation policy for machinery is 20% using the diminishing balance method.
The correct answer for the accumulated depreciation is £1,440. Can someone please tell me how this is right? I have tried every way possible and I cant come back to this amount.
Thank you!!
Alice
0
Comments
-
1/1/11 Buy original machine....................................4,000
31/12/11 First year's depreciation 20%x4,000........ (800)
................................................................................3,200
31/12/12 Second year's depreciation 20%x3,200.... (640)
.................................................................................2,560
Total credited to Accumulated Depreciation = 800 + 640 = £1,4401
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