- November 28, 2015 at 3:34 pm #285970namratta1212Member
- Topics: 4
- Replies: 1
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.November 28, 2015 at 5:40 pm #285991John MoffatKeymaster
- Topics: 57
- Replies: 51532
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 = 115,600
The 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.