• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Depreciation of PPE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Depreciation of PPE

  • This topic has 8 replies, 2 voices, and was last updated 4 years ago by P2-D2.
Viewing 9 posts - 1 through 9 (of 9 total)
  • Author
    Posts
  • March 21, 2019 at 1:36 pm #509945
    lusan
    Participant
    • Topics: 31
    • Replies: 17
    • ☆

    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?

    March 21, 2019 at 10:01 pm #510008
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6501
    • ☆☆☆☆☆

    Hi,

    Where is the question from originally, please? And also where have you found the solution on our website?

    Thanks

    March 22, 2019 at 5:39 am #510026
    lusan
    Participant
    • Topics: 31
    • Replies: 17
    • ☆

    Its the question from open tuition, Online practice question that open tuition facilitates for every chapter.

    March 22, 2019 at 5:43 am #510027
    lusan
    Participant
    • Topics: 31
    • Replies: 17
    • ☆

    https://opentuition.com/acca/fr/acca-fr-chapter-5-ias16-questions/
    here is the link

    March 23, 2019 at 7:21 am #510115
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6501
    • ☆☆☆☆☆

    Hi,

    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

    March 23, 2019 at 9:20 am #510130
    lusan
    Participant
    • Topics: 31
    • Replies: 17
    • ☆

    I have made calculation depending on my understanding. So, Please can you explain how can it be answer $5850 ?

    March 24, 2019 at 8:26 pm #510311
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6501
    • ☆☆☆☆☆

    Have you looked at the answer provided? It shows how to get the answer of $5,850.

    March 25, 2019 at 9:39 am #510362
    lusan
    Participant
    • Topics: 31
    • Replies: 17
    • ☆

    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.

    March 25, 2019 at 10:08 pm #510430
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6501
    • ☆☆☆☆☆

    There 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

  • Author
    Posts
Viewing 9 posts - 1 through 9 (of 9 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

Changes to the SBL exam from September 2023

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

 

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on CAPM and MM Combined – ACCA Financial Management (FM)
  • Rana Nabeel on CAPM and MM Combined – ACCA Financial Management (FM)
  • John Moffat on Investment Appraisal Under Uncertainty: Sensitivity Analysis (example 1) – ACCA Financial Management (FM)
  • DIVIJ on Investment Appraisal Under Uncertainty: Sensitivity Analysis (example 1) – ACCA Financial Management (FM)
  • John Moffat on Interpretation of Financial Statements part a – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy