The following information has been extracted from Triage Co's Trial Balance:
P&E Cost $72,100 $44,000
P&E, Accumulated Dep $28,100 $27,350 $6,600
Included within the cost is an item of equipment that was purchased for $10,000 on 30 September 20X5
Traige's notes to financial statements reveal that depreciation is charged at 15% per annum on a reducing balance basis, time apportioned in the years of acquisition and disposal
In accordance with IAS 16 PPE, what is the dep charged to traige co's statement of PL in respect of the P&E for the year ended 31 Mar 20X6
Soln:
Plant: 72100-10000=$62100
Dep of Equip=10000*6/12*15%=$750
Acc Dep of Plant only=28100-750=$27350
So Op bal of Plant=62100-27350=$34750
Dep Of Plant=34750*15%=5212.5
Total Dep=750+5212.5=$5962.50
solution in open tuition is total dep $5850
which one is correct?
Ask the Tutor ACCA FR
Depreciation of PPE
7y ago#1Hi,
Where is the question from originally, please? And also where have you found the solution on our website?
Thanks
Its the question from open tuition, Online practice question that open tuition facilitates for every chapter.
https://opentuition.com/acca/fr/acca-fr-chapter-5-ias16-questions/
here is the link
7y ago#4Hi,
The answer is the 5,850 that is given in the solutions to the question. I have no idea where you have found the solution that gives 5,962.50 as that is incorrect.
Thanks
I have made calculation depending on my understanding. So, Please can you explain how can it be answer $5850 ?
7y ago#6Have you looked at the answer provided? It shows how to get the answer of $5,850.
Yes, I have looked. That is why I'm asking you where is the mistake in my calculation or in the calculation made by open tuition.
7y ago#8There is no mistake in the calculation provided by, so you need to compare what you've done to the solution given and work out what you've done differently. Once you'v done this then you can specifically ask about a particular part that you do not understand.
Thanks
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