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june 2011

This topic has 5 replies, 2 voices, and was last updated 8 years ago by MikeLittle.

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November 12, 2013 at 6:43 pm #145720
d245
- Topics: 56
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Rose purchased plant for 20 million on 1 may 07 with estimated life of 6 yrs.residual value of 1.4 million .At 1 may 2010 the estimated residual value changed to 2.6 million .The change hasnot been taken to the financial statement of 30 april 2011?
Kindly solve this .
November 12, 2013 at 7:27 pm #145727
MikeLittle
Keymaster
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Is it 2.7 depreciation and carrying value of 8 million as at 1 May, 2011?
November 12, 2013 at 10:36 pm #145743
d245
- Topics: 56
- Replies: 38
yes as per the solution but i dont understand y
at 1may 2010 cost 20 -2.6=17.4
As the the 3yrs have passed away .Arent we going to depriciate from remaining 3 yrs.
depriciation.17.4/3=5.8
November 13, 2013 at 5:34 pm #145865
MikeLittle
Keymaster
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20 depreciated at 3.1 per annum gives a net book value of 10.7

Realisable value changes to 2.6 leaving 8.1 to be depreciated over the remaining 3 years at 2.7 per annum

And 10.7 – 2.7 gives a net book value of 8 at the end of the fourth year

OK?
November 14, 2013 at 10:27 am #145960
d245
- Topics: 56
- Replies: 38
.Thx u .God bless you
November 14, 2013 at 12:43 pm #145983
MikeLittle
Keymaster
- Topics: 26
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You’re welcome
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