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Dear Sir,
my question on the provision ,i Dr PPE with 3000 cr prov with 3000, which gives total asset of 5000+300=8000..i am quite upset because i deduction a depreciation of 8000/10=800 which then gives me a cvalue of 7200 which i transferred to my movement account as a debit..but the examiner ignored the 800 deprecation simply..can u please tell me why..he transferred the 8000 at cost to a movement of PPE at NBV…which doesnt quite make sense?I don’t remember the question and I can’t get my hands on it easily whilst I wait for my car to be repaired.
However, if it’s a cash flow question, why are you dealing with depreciation – it’s a non cash item and needs to be added back in the Operating Activities section of the Cash Flow.
I’m not sure about the 3,000 – what’s that a provision for? You need to give me more information – sorry
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