Kaplan Book - Exam Kit - Chiron question

Alina_G

"You are given the following information about a sole trader called Chiron as at 31 January
20X5:
The value of assets and liabilities were:
 Non‐current assets at cost £10,000
 Trade receivables £2,000
 Loan £7,500
 Closing capital (at 31 January 20X5) £3,500
There were no other assets or liabilities.
(a) Calculate the amount of accumulated depreciation at the year end 31 January 20X5
£______________"
The answer says £1,000 but I do not understand the calculations behind the answer.

Can someone help me please ?

Thank you

Alina_G

My logic says to extract the Acc Depr from the Accounting Equation: Assets = Liabilities + Capital => Assets = £12,000; Liabilities = £7,500; Capital = £3,500; £12,000 = £11,000, so I am missing £1,000 from L+C side => Acc depr = £1,000. But I am not sure if I am right

Krisso

Hopefully this should assist you

Alina_G

Thank you I draw up the T account in the mean time, and I have realised how easy it was thank you again