PPE and Reserves for depreciation of PPE as followsCost Reserves for depreciationat atAssetsOffice equipmentLand and building (land cost Rs.5000,000)Motor Vehicle(2) Trader was commenced at 01.04.2018, at this date office equipment and land & buildingidentified as assets. Motor vehicle was purchased on 01.01.2023. Motor vehicle is depreciatedat 10% on cost.
Question
PPE and Reserves for depreciation of PPE as followsCost Reserves for depreciationat atAssetsOffice equipmentLand and building (land cost Rs.5000,000)Motor Vehicle(2) Trader was commenced at 01.04.2018, at this date office equipment and land & buildingidentified as assets. Motor vehicle was purchased on 01.01.2023. Motor vehicle is depreciatedat 10% on cost.
Solution
It seems like you're asking for help with accounting for Property, Plant, and Equipment (PPE) and their depreciation. However, you haven't provided any specific numbers for the cost or reserves for depreciation of the office equipment, land and building, or motor vehicle.
Here's a general step-by-step guide on how to account for these items:
-
Identify the cost of each asset. This is usually the purchase price plus any costs necessary to get the asset ready for use (like installation costs).
-
Determine the useful life of each asset. This is how long you expect to use the asset in the business.
-
Calculate the depreciation for each asset. This is usually done on a yearly basis. For the motor vehicle, you mentioned it's depreciated at 10% on cost. So, you would take the cost of the vehicle and multiply it by 10% to get the yearly depreciation.
-
Record the depreciation. This is usually done by debiting (increasing) Depreciation Expense and crediting (increasing) Accumulated Depreciation.
-
Update the book value of each asset. The book value is the cost of the asset minus its accumulated depreciation.
-
Repeat steps 3-5 each year until the asset is fully depreciated.
Remember, land is not depreciated. So, you would only do these steps for the office equipment and motor vehicle.
If you provide more specific numbers, I can help you work through this process with those.
Similar Questions
Details of accumulated depreciation of property, plant and equipment are as follows.Assets Cost Rs. ‘000’ Accumulateddepreciation Rs. ‘000’Motor vehicleOffice equipmentLand and building(Land cost Rs. 5 000)2 0001 0009 7006006251 80012 700 3 0252. In accordance with inventory records, cost value of stock on 31.12.2021 is Rs. 450 000. However, thegoods taken by Gayathri for her private need have not been recorded.3. Telephone charge not paid up to 31.12.2021 is Rs. 30 000.4. Property, plant and equipment are depreciated on straight line method. The details useful life time andresidual value are given below.Grade - 12 (2023) – 2023 FWC - 7 - Accounting- IAssets Useful life time Residual valueMotor vehicleOffice equipmentBuilding20 years10 years18 years---
An equipment was purchased on January 1, 2017 for P50, 000 with a salvage value of P5, 000 and useful life of 10 years. The company has a semi-annual accounting period. The amount of depreciation to be recorded on June 30, 2017 isSelect one:a.P4,500b.P2,250c.P2,500d.P5,000
Which assets would be considered PP&E?1 pointInventory, office supplies, accounts receivablesLand, buildings, cashLand, buildings, equipmentSalaries, rent, snacks
A plant asset was purchased on January 1 for P40,000 with an estimated salvage value of P8,000 at the end of its useful life. The current year's Depreciation Expense is P4,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is P20,000. The remaining useful life of the plant asset is.
Prepare trading Account profit and loss and profit and losss Approprition Account for the year ended 31 st March , 2019 and Balance sheet as at that date after accounting the following adjustments :(i ) stock as at 31 st March , 2019 was Rs. 50.000,(ii) Rent is Rs. 10.000 per month ,(iii) Depreciate Furniture and fixtures and Computers @ 20 % p.a ,Machinery @ 10% p.a and(iv) interest on capitals is allowed @ 6% p.a .
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.