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

This topic has 2 replies, 2 voices, and was last updated 5 years ago by cadhakan.

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February 26, 2021 at 8:07 am #611755
cadhakan
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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
February 28, 2021 at 10:49 am #612096
P2-D2
Keymaster
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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
February 28, 2021 at 12:43 pm #612115
cadhakan
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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
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