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John Moffat.
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shahana131
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Sweeto maintains a fleet of company cars and depreciates all vehicles on a straight-line basis over a period of three years from the month of acquisition. During 2012 the company disposed of the following vehicles:
I. A Volvo which had originally cost $32,000 on 1 April 2009 was sold on 31 July 2012 for $7,000
I. An Audi which had originally cost $40,000 on 1 September 2010 was sold on 30 November 2012 for
$18,000
What figure for profit or loss on disposal of non-current assets should appear in the company’s statement of
profit or loss for the year ended 31 December 2012?Sir how do we get the dep amount ?
John Moffat
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The question says that they are depreciated straight line over three years from the month of acquisition. So you need to count the number of months that they have been owned for and calculate on that basis.
shahana131
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