IGCSE Accounting Paper-1: Specimen Questions with Answers 289 - 291 of 338

Get unlimited access to the best preparation resource for Bank-PO : get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.

Passage

Anand depreciates his furniture using the straight line method of depreciation. He provides a full year depreciation in the year of purchase and none in the year of disposal. He provided the following information:

Furniture Using the Straight Line Method of Depreciation
Furniture
Cost

$

Accumulated Depreciation

$

At 31 Dec 20165500011000
At 31 Dec 20175500016500

There were no new purchase or disposal during the year ended 31 Dec 2017.

Question 289 (3 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

Calculate the rate of depreciation being applied by Anand? (Marks 3)

Explanation

Annual Depreciation charge for the year ended 31 December 2017: $

Accumulated Dep. as at 31 Dec 2017 16500

Less: Accumulated Dep. as at 31 Dec 2016 (11000)

Depreciation charge 5500

Further Information:

On 1 April 2018, Anand purchased a new furniture, cost $ 15000.

On 15 June 2019, he sold old furniture costing $ 6000 and on which three years depreciation had been provided.

Question 290 (4 of 5 Based on Passage)

Edit

Write in Short

Short Answer▾

State one method of depreciation other than the straight line method, and explain with an example how the depreciation is calculated using that method. (Marks 3)

Explanation

Production Unit Method: Under this method, a fixed rate of depreciation per unit of production is calculated by the following formula-

For Ex- If a machinery was purchased for $ 5500 whose scrap value is $ 500. The physical units of product are 2500. The rate of depreciation would be calculated as follows-

Question 291 (5 of 5 Based on Passage)

Write in Short

Short Answer▾

Complete the following table by filling in the required amounts of each of the following. (Marks 12)

Complete the Following Table
Calculations$
Furniture at Cost on 31 December 2018
Furniture at Cost on 31 December 2019
Depreciation Charge for the year ended 31 December 2018
Accumulated Depreciation at 31 December 2018
Depreciation charge for the year ended 31 December 2019
Accumulated Depreciation at 31 December 2019

Explanation

Complete the Following Table Calculations
Calculations$
Furniture at Cost on 31 December 2018
Furniture at Cost on 31 December 2019
Depreciation Charge for the year ended 31 December 2018
Accumulated Depreciation at 31 December 2018
Depreciation charge for the year ended 31 December 2019
Accumulated Depreciation at 31 December 2019

🎯 Select Paper 📂

🚀 Consider Exploring

Developed by: