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So it was calculated but it was not included in the sc @ end as it was in the suspense a/c. Therefore we need to calc the new issue using the 90000 shr to know the split between new shr issue n sp which actually totals to $13500..
Yes, i wanted to obtain NBV of Whole Plant @ 1 Oct 2012 then subtract NBV of PHFS @ 1 Oct 2012 to obtain NBV of the rest of the plant at 1 Oct 2012. Then proceed with obtain the NBV of the rest of the plant @ year end by removing the remaining half year depn.
So does that mean i won’t be abl to proceed that way bcause of the reducing line depreciation method?
Wrt note (ii) in the question (plant), the answer (extract) from acca is as follows :
Plant
The plant held for sale should be shown separately and not
be depreciated after 1 October 2012.Other plant
Carrying amount at 1 April 2012 (94,500 – 24,500) 70,000
Plant held for sale (9,000 – 5,000) (4,000)66,000
Depreciation for year ended 31 March 2013 (20%) (13,200)Carrying amount at 31 March 2013 52,800
Plant held for sale:
At 1 April 2012 (from above) 4,000
Depreciation to date of reclassification (4,000 x 20% x 6/12) (400)Carrying amount at 1 October 2012 3,600
Total depreciation of plant for year ended 31 March 2013 (13,200 + 400) 13,600.
My question is :
Why isn’t the Plant carried @ 1 Oct 2012 : [70000 – Depn (6/12*20%*70000)] = 63000
Then NBV of Plant HFS @ 1 Oct 2012 : [(9000-5000) – Depn (6/12*20%*4000)] = (3600)NBV of the rest of the plant @ 1 Oct 2012 = (63000 – 3600) = 59400
Depn: last 6 mths (excl. PHFS): (1 Oct 2012-31 Mar 2013)=(6/12*20%*59400) = 5940
Depn: first 6 months (excl. PHFS) : (1 Apr 2012-30 Spt 2012) = (6/12*20%*70000)=7000
Depn on Plant HFS (1 Apr 2012-30 Spt 2012)(6/12*20%*4000) = 400Plant : 31/03/2013=59400-5940=53460