ACCA F7 December 2003 Question 2 Tourmalet

Comments

1. Mahoysam says

   November 21, 2013 at 5:26 am

   Okay Mr Mike, it is all clear but ONE thing! When I was calculating the depreciation charge on the rest of the plant (excluding the plant the was sold and leased back) on reducing balance basis, what I did is that I have deducted the 40,000 NBV of the sold plant from the NBV of the rest of the plant in order to calculate the depreciation charge for the rest of the plant, but you didn’t.. I am confused, why didn’t you take it out, we did calculate the depreciation charge for it separately giving that it has to be depreciated on straight line basis. Was it already not included in the TB balance? Then how can I know that it is not included there… :/

   Thanks,

   Maha

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2. talya says

   June 10, 2012 at 1:30 pm

   Sir,
   Id like to recheck with you the finance cost in this answer is $6k. shouldnt it be just $3800? because the finance takes place in june instead charging the loan interest for full year shouldnt it be charged for only 4 months?
   sorry i maybe missing something out?
   thank you

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   • Mahoysam says

     November 21, 2013 at 5:20 am

     Nope, the finance lease starts at 1.10.2002 which is the beginning of the accounting year so a full year charge is required.

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