NON CURRENT ASSET

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    Gabriella
    Participant
    • Topics: 20
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    Hi
    Could you please help me how to work out the answer to the below question?

    The asset register shows a carrying value for non current assets of $85,600; the ledger accounts include a cost balance of $185,000 and an accumulated depreciation balance of $55,000. Which of the following may expalin the discrepancy?

    The correct answer is: The omission of an upwards revaluation by $16,400 form the register and the accidental debiting of the depreciation charge of $28,000 to the accumulated depreciation ledger account.

    Asset registrer

    Carrying value per question 85,600
    Addition of land 30,000
    = 115,600

    Ledger accounts

    Carrying value per question 130,000
    Disposalat carrying value (14,400)

    = 115,600

    I don’t understand how to worked out the additon of land and the disposal at carrying value

    thanks

    Gabbi


    Avatar of johnmoffat
    John Moffat
    Keymaster
    • Topics: 3
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    I have no idea either!

    I can only think that you have missed out some of the question (or the answer).
    (The first three lines after ‘correct answer’ are of course correct. The rest of the answer you have typed makes no sense)

    I am not in a position to explain what is in books published by others.


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    Gabriella
    Participant
    • Topics: 20
    • Replies: 22

    HI John,

    No problem. I copied the question as written on the book. It makes no sense to me either.
    Thanks a million

    Gabbi

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