Hi mike
The solution doesn't include the depreciation on the plant on the trial balance (not the one manufactured ) as far as I can see
Would this entry be
128000-32000=98000@12.5%=12250
Dr dep expense (cost of sales)
Cr accum dep plant
Can you also advise the treatment of the investments held at fair value through profit and loss (if any)
Many thanks
Hugh
Ask the Tutor ACCA FR
Mini exercises : Non current assets q2
The depreciation on the plant IS included! However, it has been shown as 24,000 and should be 12,000
Your calculation is (almost) unforgivable! Let me ask you this ..... What is 8 - 2? Is it 8?
"How do you treat investments held at fair value through profit or loss?"
There's a clue in the title "fair value through profit or loss"
Do I need say more?
Away you go and remember, have respect for your parents! They gained their qualifications without the benefit of the Internet!
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