Aphrodite co qstn Sec b bpp (ias 16 qstn) mock exam 2

VDVidhi Dhakan5y ago

Hi sir, I have doubt in the first qstn where the asked what amount of depreciation should charged in profit and loss. But I confused in revalued amount I did revalued amt/ rem useful life So Revalued amt is 81000/ 10yrs total - 6/12 passed so remaining 9.5 months 81000/9.5yr *6/12 I get 4263 But bpp answer is 810000/9yr *6/12. = 4500 Can you please explain me why they did not deduct 6/12 which was already passed. Thank you sir in advance Have great day

PP2-D2Tutor5y ago#1

Hi, You need to be careful with the acquisition date. The asset was acquired one year ago, so therefore there are 9 years left and not 9.5 as you have suggested. Thanks

VDVidhi Dhakan5y ago#2

Ohh I see just now I didn’t see the qstn states that The machine was revalued 810000 on 1 July x4 And machine purchased on 1 July x3 so total 10 years -1 year (1July x3 to 1July x4). Thanks sir for your great explanation which help me more in my understanding. Thank u again