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- This topic has 8 replies, 2 voices, and was last updated 4 years ago by P2-D2.
- March 21, 2019 at 1:36 pm #509945
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
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
solution in open tuition is total dep $5850
which one is correct?March 21, 2019 at 10:01 pm #510008
Where is the question from originally, please? And also where have you found the solution on our website?
ThanksMarch 22, 2019 at 5:39 am #510026
Its the question from open tuition, Online practice question that open tuition facilitates for every chapter.March 22, 2019 at 5:43 am #510027
here is the linkMarch 23, 2019 at 7:21 am #510115
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.
ThanksMarch 23, 2019 at 9:20 am #510130
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
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
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
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.
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