cash flow staement

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
can someone please explain how you go about working out the calculations on purchasing of fixed asset under capital expenditure, I am not getting it. thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement

    The easiest way is to calculate it as a T account. You will start with the assets b/f from previous year on the Debit side, this years depreciation on the credit side, this years c/f balance from the Balance Sheet on the credit side. The balancing figure is then the amount you have spent on purchase of fixed assets this year.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement

    for instance if you are dealing with 2003 and 2002, would the previous year be 2002
  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement

    could you please be more specific, it seems hard to differentiate this years figure, thanks much
  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement

    Let me know what paper you are doing and I will work it out for you
  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement

    This year's figure would be the amount shown for Fixed Assets in this years Balance Sheet and last year's would be the amount shown for Fixed Assets in last year's Balance Sheet. So yes if you are dealing with the Cash Flow for 2003, the previous year would be 2002.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement

    thanks
  • System
    System Posts: 100,534 🤖 Admin 🤖
    cash flow staement-bernadette

    I was doing the practice examination skuhn paton ltd quinelt from workbook osbourne ltd. honestly I found a way in calculating it But I swat it I need to know the proper way in doing it so I dont have to swat it, any help is appreciated.

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