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Dear Tutor. There is a structured question in BPP practice and revision kit. The question is extremely long to type. It’s on page 94 (Emma). I’m unable to get the same answer as the book for purchases of tangible non current assets.
In the book working it uses b/d and c/d of ppe instead of b/d and c/d of tangible asset (305 and 380) to get the answer for purchases of tangible NCA. I also did not understand how the book got (100 – 91) for revaluation.
Can you please help me with this question please ?
I am not sure that I have the same edition of the Revision Kit as you, which makes it hard to answer you.
However, the property, plant and equipment are the tangible assets.
The revaluation reserve on the SOFP has increased from 91 to 100 and so the difference must be the amount of the revaluation during this year.
If that helps you then great, but if not then please ask more 🙂
Thank you Sir. I did not see the revaluation surplus, I was trying to calculate it though a NCA account.
But for tangible asset. Why the book did not use the b/d and c/d provided in the SOFP under NCA.
I have the 11th edition of the book.
Thank you so much for taking the time to respond to my query Sir
Maybe there is a typing error in your book, but the tangible assets are the PPE for which the b/f and c/f figures are 305 and 380. However these are the net book values (cost less accumulated depreciation) so maybe the answer is dealing with the costs and the accumulated depreciation figures separately.
Thank you Sir. There was indeed an error in the book. I was stuck with this question for a long time. Now I’ve completed it thanks to your help Sir. Thank you.
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