Depreciation totally throwing me on this task

AnyPotts Registered Posts: 13 New contributor 🐸
You know when you look at something for so long, you just cannot think your way out of this point i just feel silly for not knowing what to do.

Could anybody talk me through the calculations for the depreciation in this task please ready to be added to the COS/Admin/Distribution..

thank you


  • mergen
    mergen Registered Posts: 112 New contributor 🐸
    Im studying FSCL myself at the moment, on chapter 8.

    Land - Dr Land with 500k and Cr Revaluation Surplus 500k.

    Buildings is at 2% 125500x2%=2510 p.a.

    Plant and E is at 20% 40000x20%=8000 p.a. but its diminishing so you need to reduce it every year. e.g. 40k-8k=32k. 32000x20%=6400, 32000-6400=25600. 25600x20%=5120 and so on.
  • AnyPotts
    AnyPotts Registered Posts: 13 New contributor 🐸
    it says land is not depreciated though....only buildings....would that change the answer?

    12,5500 - 50,500 = 75,000

    2% x 75,000 = 1'500
  • Pian32
    Pian32 MAAT Posts: 474 Dedicated contributor 🌟 🐵 🌟
    @Anypotts Correct
    You need to take the land out of the Land and Buildings amount on the trial balance and then depreciate. For the Plant and Machinery you need to take off the depreciation that has already occured and then depreciate.

    All figures (000)

    L+B -Straight line

    125,500-50,500= 75,000

    2%75000= 1,500

    P+M- Rolling Balance

    40,000 - 14,400 = 25,600

    20% * 25600 = 5,120
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL -
    SBR - Passed Mar 22
    ATX - Passed Dec 21
    APM - Passed June 22
  • AnyPotts
    AnyPotts Registered Posts: 13 New contributor 🐸
    @pian32 perfect thank you - made the mistake of lookling at a fellow students answers and assumed, as only I could, that it must've been mine that was wrong.

    now to finish the task so my tutor doesnt think ive been lazy. haha
Privacy Policy