# Depreciation totally throwing me on this task

Registered Posts: 13 New contributor 🐸
You know when you look at something for so long, you just cannot think your way out of it...at 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

• 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.
• 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
• 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
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• 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