Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following is an extract from the trial balance of Caraway Ltd as at 31.3.2018: Land at cost at 31 March 2018 2,200,000 Buildings at
The following is an extract from the trial balance of Caraway Ltd as at 31.3.2018:
Land at cost at 31 March 2018 | 2,200,000 | |
Buildings at cost at 31 March 2018 | 1,400,000 | |
Machinery at cost at 31 March 2018
| 1,050,000 |
|
Accumulated depreciation at 1 April 2017: | ||
Buildings Machinery | 600,000 140,000 |
The following notes are available:
- At 31 March 2018, the land is revalued at 3,000,000. There were no purchases or disposals during the year.
- Buildings are depreciated at 5% of cost with a full years depreciation in the year of purchase. During the year a building costing 400,000 was purchased.
- During the year, a machine costing 250,000 was sold for 60,000. The accumulated depreciation on the machine was 80,000. Machinery is depreciated at 10% reducing balance basis.
Required: Complete the note to the accounts for PPE for the year ended 31.3.2018.
Step by Step Solution
There are 3 Steps involved in it
Step: 1

Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2

Step: 3

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