[vishalsharma1981]

18july

[vishalsharma1981]

Excellent. Thanks a ton.

Regards
Vishal

[vishalsharma1981]

extremely sorry Sir. I am new to the site and did not know, Won’t happen again.

[vishalsharma1981]

share premium, got it, thanks sir

[vishalsharma1981]

May be on the balance sheet they have overdraft which i think takes priority when adding cash to the bank or reducing the bank debt (whichever way you look at it).

Probably, I am wrong, would be interesting to know.

[vishalsharma1981]

Qn) The liverpool company acquired a drilling machine on 1 october 20X5 at a cost of $25000 and depreciated it at 25% per annum on a straight line basis.

I believe, above makes it 4 year useful life. Isn’t it?

[vishalsharma1981]

As far I see, Building is Freehold and land is Leasehold, so we are stripping land element out, so 800,000 x 1/5 = 160,000.

But that’s for first year, What if the question had asked operating expense for the second year?

[vishalsharma1981]

Perfect. Thank You.

[Author]

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