- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
- Posts
The asset register shows a carrying value for NCA of $85600; the ledger accounts includea cost balance of $185000 and an accumulated depreciation balance of $55000. How can we may explain the discrepancy ?
Can you please explain about this
the omission of the disposal of an asset from the ledger accounts ( cost $25600 and accumulated depreciation at disposal $ 11200) and the omission of an addition of land costing $30000 from the register.The carrying value on the ledge accounts is 185,000 – 55,000 = 130,000.
This should be the same as the amount in the asset register. It isn’t and so there is obviously a mistake.A disposal has been missed out of the ledger accounts. The carrying value is 25,600 – 11,200 = 14,400.
Therefore it needs removing and the correct value in the ledger accounts is therefore 130,000 – 14,400 = 115,600The land has been missed out of the register, and so the correct value in the register is 85,600 + 30,000 = 115,600
Now the two agree 🙂
- You must be logged in to reply to this topic.