Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

0.17KB/s Q. 'Only 68% 11:17 PM attachment(1).pdf 2 X At | October 1999 the property. plant and equipment balances of Jojo Lid were as follows:

image text in transcribed
0.17KB/s Q. 'Only 68% 11:17 PM attachment(1).pdf 2 X At | October 1999 the property. plant and equipment balances of Jojo Lid were as follows: Original Cost Accumulated depreciation NIV Freehold land and buildings 1,550,000 Plant and equipment 2,875,400 1,550.010 Vehicle's 1,647.DDD 3315,202 Furniture and fittings 1,125,DDD 21 1,002 2.537, 200 1.436,000 32,000 1,093.D80 The straight-line rates of depreciation based on cost, used to that date were 10% per annum for plant and equipment: 20% per annum for vehicles, and 12% per annum for furniture and fittings, It is the company's policy to make a full year's charge on property. plant and equipment acquired in the year of purchase and no depreciation in the year of disposal. The following additional information is relevant to the calculation of depreciation for the year to 30 September 1992: (1) Freehold land and buildings were professionally re-valued during the year at sh 975,000. (i] An item of equipment bought In November 1997 for sh 105,000 is now recognised to have a useful life of at least 20 years. vill. A vehicle bought in June 1999 for sh 65,000 was traded in at a value of sh 44,000 in part exchange for a new vehicle costing 140,000. (iil) Included with the furniture and fittings is an item which originally cost sh 15,000 and which is already fully depreciated and not expected to have any material use or resale value. Required: Prepare a schedule of property, plant and equipment movements and balances suitable for inclusion in the company's published accounts for the year to 30 September 2002. Show clearly the amount to be charged against the year's profits and loss account and the balances to be shown in the balance sheet. (CPA slipped) Mobile View Tools 0 O

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, G. Richard Chesley, Ray Carroll

6th Canadian Edition

0070915164, 9780070915169

More Books

Students also viewed these Accounting questions