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Hai John
Sleepy sold an asset on 31 may 2019 for 5000. The asset had originally cost 18000 when it purchased on 1 November 2016 and had been depriciated since that date at the rate of 30% on reducing balance method. What is the profit or loss disposal
Can you please solve this question for me
Regards
Ahlam Amina
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – it contains answers and explanations!!
You have not said what the depreciation policy is (i.e. whether or not there is a full years charge in the year of purchase and whether or not there is any charge in the year of sale – if that is the case (as it normally would be with reducing balance depreciation) then you also need to know the company year end.
Sorry sir this is the question which my tutor ask me to solve he only send this much of information that why I don’t able to solve this anyway thanks for your effort
I think you need to ask him for the extra detail because as it stands it is a silly very question indeed 🙂
Hi sir i dont have the answer to this question, can you help me find the answer?
On 1 September 20X8, Desmond Co disposed of an item of plant for $12,000. The plant originally cost $24,000 and had accumulated depreciation of $9,000 at 1 October 20X7.
Plant is depreciated at 25% per annum using the reducing balance method. A full year’s depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal.
1.) What is the profit or loss on disposal of the plant?
2.)What is the correct calculation for the depreciation expense on the remaining plant for the year ended 30 September 20X8 (all figures are in $’000)?This question is from a mock exam. Please help me arrive at the answer.
Please do not expect me to do your homework for you.
Everything needed to be able to answer this question is explained in my free lectures on non-current assets.
Tell me your answer and then I will tell you if it is correct (if it isn’t correct then I will tell you where you have gone wrong).
The loss is indeed $3,000.
On the information that you have typed it is not possible to answer the depreciation on the remaining plant because there is no information about the remaining plant. The question as you have typed it only gives information about the plant that was sold.
Sorry sir,
Plant at cost 1 October 20X7 $176000
Plant accumulated depreciation 1 October 20X7 $88000
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