Help with depreciation
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Could someone tell me how to calculate depreciation in December 2003 past papers task2.2 (i) <BR><BR>net assets at 30 Nov 2003 net assets at 30 Nov 2004<BR>fixed assets £8000 £6000<BR>cumulative depreciation £2000 £1000<BR>NBV £6000 £5000<BR>I do not understand how did they get £1000 depreciation for year 2004<BR>If depreciation is based on the straight line method and no fixed assets were bought or sold during the year, shouldn't the depreciation be £2000.<BR><BR>Thanks in advance
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Help with depreciation
Don't have this paper yet but if you could send that bit to me I could have a look. It looks okay on what you have said but probably need more information to understand what you are having problems with.<BR><BR>0 -
Help with depreciation
Hi.<BR><BR>I can't work out which exam paper you're doing.<BR><BR>Scott.0 -
Help with depreciation
Are you sure that it is the December 2003 past exam paper?, as task 2.2 on the December 2003 paper ask you to prepare a profit and loss account for a partnership.<BR><BR>Dawn0 -
Help with depreciation
The question itself is very confusing. If there were no asset sold or disposed off then the fixed asset in books should be 8000 at cost and should not be 6000 in the later year. since there were no disposal or sales of fixed asset, there should be 2000 again the depreciation cumulating to 4000 and the NBV should be 4000.<BR><BR>Am i being stupid?<BR><BR>Please let me know.<BR><BR>Arjun0 -
Help with depreciation
Sorry Guys. <BR>First of all I've started to panic as exams are approaching very fast. I didn't look at task very closely, actually I failed to look at last year's profit & loss account, which clearly states that depreciation figure for last year was £1000. As in this year no assets were bought or sold depreciation should be the same £1000.<BR><BR>When I panic my brain just do not work properly. By the way I was doing PEV exam paper. <BR><BR>Thanks to everyone who tried to help0