WorksheetsSale of non-current assets
Total questions: 8
Worksheet time: 4mins
Explain non-current assets
NCA provide benefits that last beyond one accounting period and are posted to the Income statement
NCA provide benefits that last within one accounting period and are posted to the Balance sheet
NCA provide benefits that last beyond one accounting period and are posted to the Balance sheet
NCA provide benefits that last beyond one accounting period and are for owner's use
Calculate the depreciation for the Motor vehicles.
Business bought MV for $10 000. It has a life span of 5 years and has a scrap value of $800 at end of its useful life.
Depreciation = $2 000
Depreciation = $1 840
Depreciation = $2 160
Depreciation = $50 000
What are the accounting concepts applied in depreciating NCA?
accrual and prudence concepts
matching and prudence concepts
accounting entity and matching concepts
accrual and matching concepts
What is the difference between depreciation and accumulated depreciation? (Tick 2 boxes)
Dep is the amount for the current year of NCA while Accumulated dep is the total amount of NCA for several years
Dep amount is posted as expense while Accumulated dep is deducted from NCA in the Balance sheet
Dep and the Accumulated dep amount is the same but Accumulated dep is the total amount added in the Balance sheet
Dep is the amount for the current year of NCA while Accumulated dep is Not posted to Balance sheet
Equipment $5 000. Accumuated dep $1000
Dep at 10% on cost.
Fixtures $8 000. Accumulated dep $800.
Dep 10% at net book value.
What are the 2 methods of dep used? Calculate dep for each NCA.
Equipment Straight line method Dep=$500
Fixtures Reducing balance method Dep=$720
Equipment Reducing balance method Dep=$400
Fixtures Straight line method Dep=$800
Equipment Straight line method Dep=$500
Fixtures Reducing balance method Dep=$800
Equipment Straight line method Dep=$1 500
Fixtures Reducing balance method Dep=1 520
How to calculate Net book value of NCA?
Original cost + Accumulated dep
Original cost - Accumulated dep
Original cost + Dep
Original cost - Dep
How to calculate the profit or loss on sale of NCA? (tick 2 boxes)
Original cost - Accumulated dep - selling price
Net book value - Accumulated dep - selling price
Original cost - Dep - selling price
Selling price - Original cost
What is the nature of Accumulated depreciation account?
DR + CR+
DR - CR+
DR - CR-
DR + CR-
