Depreciation HELP!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi <BR><BR>im soooo stuck, u know in the FRA JUNE 2004 past paper, in section 2 where u have to complete the journal, i dont understand where 500 comes from for question 2.3 d, where u have to provide depreciation at 10% straight line. coud someone plz help me out would rly appreciate it being such short notice..<BR><BR>Thanks..<BR><BR>Affy!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Depreciation HELP!

    i done FRA last december ....... whats the balance on the suspense account and i will try and figure it out for you
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Depreciation HELP!

    i havent worked out the balance on the suspense account yet, its the depreciation thats quite frankly pissin me off! lol<BR><BR>the answer for question 2.3d in section2 is 500 both DR and CR, thas fine but where does the 500 come from, thats really puzzling me...
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Depreciation HELP!

    Hi Affy,<BR>The equipment cost is £4,620 (from the trial balance). Add the £780 to it (from DATA (b)), wh ich gives you £5,400, then take away the disposal cost of £400, which gives you £5,000 and multiply that by 10% (Depreciation), which gives you the £500.<BR><BR>Regards,<BR>Dawn Morgan<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Depreciation HELP!

    ohhh the trial balance, no wonder, i completely forgot abt that!<BR><BR>Thank u so so much.<BR><BR>Affy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Depreciation HELP!

    try this <BR><BR>equiptment cost account = £4620 <BR><BR>Less the original cost of £400 (C ii)<BR><BR>Plus £780 (B)<BR><BR>That equals £5000 <BR><BR>10% of that is £500 <BR><BR>remember straight line method doesnt use the NBV to calculated depn<BR><BR>plus no depreciation is calculated in year of disposal <BR><BR>hope this helps

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