[sofya]

oh can u please mail me the questions and answers if u have them? check ur messages.

[sofya]

uhhhh….kinda helpful. D’u have worked questions?

[sofya]

You are most welcome 🙂

[sofya]

No sorry its in F2 🙁 but still I jst can’t understand it!

[sofya]

Yes I came across a question in BPP in the part of controls a/c n stuff.

[sofya]

Depreciation charged yearly= (cost-scrap value)/ no of economic yrs
= (40,000-10,000)/5
=6,000

Depreciation for 1st year= (9/12)* 6,000= $4,500 [ since the van was acquired in april and it was held for a period of only 9months in the year of acquisition]

The van was disposed in 2000, therefore depreciation charged for 1st year(1997)= $4,500
Depn for 2nd yr(1998)= 4,500+6,000=$10,500
Depn for 3rd yr(1999)= 10,500+6,000= $16,500
And no depreciation charged in yr 2000(yr of disposal)

In the disposal a/c:
You will have Van a/c $40,000 on the debit side

Total depreciation $16,500 on the credit side
+ Cash Book(proceeds) $27,000
=$43,500

The balancing figure (43,500-40,000)=$3,500 goes as profit on the debit side

[sofya]

Post the question please or inbox me.

[sofya]

Have a look at kaplan website for detailed information.

[Author]

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