help on POA - depreciation (im confused)

Fireindahouse

6 Oct 07, 21:50

for eg. there is already an existing provision for depreciation in the question,

then in the PROFIT AND LOSS account i have to calculate the depreciation on this yr based on the 10% of 40000 or do i have to deduct the existing provision for depreciation given in the question from the 40000 which is 10% of (40000-7600)

to make it simpler i have to charge $4000 or $3240 to P&L??
enlighten me pls..

eagle

6 Oct 07, 23:14

I only remember
When you buy things, the accounts goes from cash to assets

You only "used" those things when it depreciates. Thus, the depreciation value will be calculated under the expenditure side.

The rest I dunno liao

--blur--

Darkness_hacker99

6 Oct 07, 23:18

Charge to P&L is $3,240

The additional information state that depreciation is to use NBV/ reducing balance method.

There fore:

($40,000 - $7,600) x 10% = $3,240

The total depreciation at Balance sheet is $3,240 + $7,600

Remember the figure at the balance sheet is accumulated value.

I-like-flings(m)

6 Oct 07, 23:21

3240.... as they say 10% on NBV... and i assume provision for dep = to acc dep right?... so 40k-7.6K = 32400 x 10% = 3240 Wink

jlzk

7 Oct 07, 15:06

Originally posted by Fireindahouse:
for eg. there is already an existing provision for depreciation in the question,

then in the PROFIT AND LOSS account i have to calculate the depreciation on this yr based on the 10% of 40000 or do i have to deduct the existing provision for depreciation given in the question from the 40000 which is 10% of (40000-7600)

to make it simpler i have to charge $4000 or $3240 to P&L??
enlighten me pls..

Er this is N lvl or O lvl work?
Charge $4000 la
The amount appear on the top is last year de.Can ignore de =) Remind me of upcoming Monday 'N' Lvl poa paper

soulwinner

7 Oct 07, 15:07

So what sit eh exact qns?

Darkness_hacker99

7 Oct 07, 15:08

Originally posted by jlzk:
Er this is N lvl or O lvl work?

N level.