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saima698.
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- October 28, 2016 at 8:43 am #346400
hello sir,
Q. At the start of the financial year 2011, the building account had a balance of 43000 and accumulated depreciation account had 26000. During the year, company purchased a building for 35000 on 13 september 2011. In connection to this new building, company has incurred the following cost:
1. Legal fees 2000
2. Paint 800
3. Wiring 2600
4. Electricity cost in wiring process 550
5. Labour cost of wiring 1300
Company also carried out some repair work on existing building which is as follows:
1. Painting 300
2. 2 additional rooms 4200
Further information revealed that labour employed for wiring purposes on new machinery was company’s own staff. Amount paid to labour for appreciation of good work was 150 which is included in 1300. Besides this amount nothing has been paid in addition to their normal wages. Company depreciates the asset on reducing balance method at the rate of 20% In case a new asset is purchased during the year the depreciation is calculated on the basis of months used during the year starting from the first day of the month subsequent to the month of purchase.
prepare:
1.Building account
2.Accumulated depreciation account-building
3.Exctracts from Income statement
4. Extracts from Financial Position.
kindly please reply me as its totally confusing.
Thankyou.October 28, 2016 at 2:04 pm #346443We do not supply full answers to full question like this – you must have an answer in the same book in which you found the question (otherwise you should not be using the book) and you must say which bit of the answer you are not clear about. Then we will try and help,
Everything needed for this question is covered in my free lectures (and the notes that go with them). They are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
October 28, 2016 at 2:19 pm #346449Thankyou for your response. I will surely watch the online lectures!
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