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Hi,
Sir please could you please explain why the answer is $1067.84 , My answer is $84.80.
The question says that no depreciation is applied for in the year of sale, but the answer shows that depreciation has been charged for the year of sale as well.Could you please help.
Thanks and regards,
The answer does not show depreciation being charged in the year of sale!
The year end is 31 January each year.
The asset is sold on 31 March 2013 – this is during the year ended 31 January 2014 (which begins on 1 February 2013) and no depreciation has been charged for this year.Sir i feel the answer is 84.80 because u start depreciation from the for the years year 2008:2009:2010:2011 so four years not five you cant start saying depreciation TO 1st jan 2008 its FROM 1st jan 2008…
Nobody is saying it is TO 1st Jan 2008!
The business has a year end of 31 January.
The asset was bought on 1 Jan 2008. That is during year ended 31 January 2008 and since their policy is to have a full years charge in the year of purchase there is depreciation for the year ended 31 January 2008.The free lectures on depreciation will help you.
(Our free lectures are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.)
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