A business has accounting year end of 30 june. it purchases an item of plant on 1 april 20x5:
cost 15000, 3yrs maintainence 450 = 15450
at date of purchase, the plant had an estimated useful life of 5 years and residual val of 2000. this was traded for replacement on 30sep 20x8 at val 5000.
depre 20% SLM
profit/loss on disposal?
after getting 2600(15000-2000 x 20%) how is the further caln to be done? the years to be considered should be 4 right? why have they showed as 3.5?
Ask the Tutor ACCA FA
Depreciation non current asset
5y ago#1From 1 April 20x5 to 30 September 20x8 is 3.5 years.
The profit or loss on disposal is the difference between the sale price of 5,000 and the net book value as at 30 September 20x8 which is the cost less 3.5 years depreciation at 2,600 per year.
Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Sign in to reply to this topic.