Financial Statements - SPL

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Sineadp
Sineadp Registered Posts: 67
in General discussion
Does anybody know how to work out the Depreciation for cost of sales when

Land & Buildings cost - £125,500
Accumulated depreciation - £15,000
Plant & Equipment cost - £40,000
Accumulated depreciation - £14,400

Land which is not depreciated is included in the trial balance at £50,500,000. It is to be revalued at £60,000,000.

Depreciation is apportioned ;

Cos of sales -50%
Distribution - 20%
Amin Expense - 30%

Please could anyone explain how to work out the Cost of sales depreciation

Thank you

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  • Adele69
    Adele69 Registered Posts: 320
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    Missing some key info, namely Depreciation rate and method.
    From prev questions I've seen Buildings at 2% SLM and Plant & Equip at 25% DBM so at a guess will use these

    First 4 figures are in thousands
    L&B total 125,500,000 - Land (before revaluation) 50,500,000, so Buildings 75,000,000

    Buildings deprec 2% of 75,000,000 = 1,500,000
    Plant&Eq CA (40,000,000 - 14,400,000) = 25,600,000 deprec 25% = 6,400,000
    Total deprec = 7,900,000

    COS portion 50% = 3,950,000
  • Sineadp
    Sineadp Registered Posts: 67
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    This has helped me out a lot, I Didn't realise you had to do the differences between the original and revaluation to work out the Buildings.

    Thank you

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