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depreciation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › depreciation

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • November 22, 2023 at 11:13 pm #695285
    oedipatc
    Participant
    • Topics: 3
    • Replies: 1
    • ☆

    On the Trial balance I am give the value of building of 80000 with the accumulated depreciation of 22500 and the information that it is depreciated with 4% per annum -straight line basis. No scrap value or number of years that it is being depreciated are given. I am correct assuming that the depreciation for the financial year should be 4% of 80000?

    November 23, 2023 at 8:57 am #695302
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54762
    • ☆☆☆☆☆

    On the basis of what you have typed then what you assume is correct. Straight line depreciation is calculated on the original cost.

    However to be certain I would need to see the exact question.

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