An asset costing 100 million KHR was purchased on 1 January 20X3. Depreciation was

provided for on monthly basis at the rate of 10% per annum using straight line method.

What was the accumulated depreciation at 30 June 20X8?

An asset costing 100 million KHR was purchased on 1 January 20X3. Depreciation was

provided for on monthly basis at the rate of 10% per annum using straight line method.

What was the carrying amount of the asset at 30 June 20X8?

The company’s policy is to charge depreciation at 20% per year on the straight

line basis, with proportionate depreciation in the years of purchase and disposal.

What should be the depreciation charge for the year ended 31 December 20X8?

What is the residual value of the equipment at the end of its useful life?

Depreciation charged on non-current assets is known to be

Q Limited purchased equipment for 150 million KHR. The equipment was

transported at a cost of 15 million KHR and installed at a cost of 7,500,000 KHR.

The employees were trained in the use of the equipment at a cost of 50 million

KHR.

At what cost will the equipment be recognised in the accounts?

What opening balance should be included in the following period’s trial balance

for equipment at cost at 1 January 20X9?

For which of the following is ‘accruals’ the most relevant concept?

(1) Depreciation

(2) The recording of opening and closing inventory in the statement of profit or

loss

(3) The recording of deferred income

(4) The valuation of inventory at the lower of cost and net realisable value

The company’s policy is to charge depreciation at 20% per year on the straight

line basis, with proportionate depreciation in the years of purchase and disposal.

What should be the depreciation charge for the year ended 30 June 20X9?

A business purchased a motor car on 1st July 20X8 for 20,000,000 KHR. It is to

be depreciated at 20% per year on the straight line basis, assuming a residual

value at the end of five years of 4,000,000 KHR with a proportionate depreciation

charge in the year of purchase.

The 20,000,000 KHR cost was correctly entered in the cash book but posted to

the debit of the motor vehicles repairs account.

How will the business profit for the year ended 31st December 20X8 be affected

by the error?

The company’s policy is to charge depreciation on plant at 20% per year on the

straight line basis, with proportionate depreciation in years of purchase and sale.

What should the company’s plant depreciation charge be for the year ended

31st December 20X8?

Bouray Ltd purchased some plant and equipment on 1st July 20X8 for

40,000,000 KHR. The estimated scrap value of the plant in ten years’ time is

estimated to be 4,000,000 KHR. Bouray Ltd’s policy is to charge depreciation on

the straight line basis, with a proportionate charge in the period of acquisition.

What should the depreciation charge for the plant be in Bouray Ltd’s accounting

period of 12 months to 30th September 20X8?

During the year ended 30th September 20X8, plant with a carrying amount of

37,000,000 KHR was sold. The plant had originally cost 80,000,000 KHR. Plant

purchased during the year cost 180,000,000 KHR. It is the company’s policy to

charge a full year’s depreciation in the year of acquisition of an asset and none in

the year of sale, using a rate of 10% on the straight line basis.

What is the carrying amount of plant and equipment at 30th September 20X8?

The sales tax payable is recoverable by Tractors (Agri-machinery) Ltd.

What amount should be capitalised in the financial statements of Tractors(Agrimachinery)

Ltd?

Depreciation of non-current assets should commence when:

Which of the following statements is correct?

(1) Depreciation aims to ensure that the carrying value of a non-current asset

reflects its fair value.

(2) All non-current assets must be depreciated.

(3) The depreciable amount of a non-current asset is its cost less any residual

value.

The reducing balance method of depreciating non-current assets is more

appropriate than the straight-line method when:

A non-current asset register is:

What should the depreciation charge for the year ended 31 December 20X8?

Modifications to the factory building costing 2,200,000 KHR were necessary to

enable the plant to be installed.

What amount should be capitalised for plant in the company’s records?

A company purchased an asset on 1 January 20X6 at a cost of 80,000,000 KHR.

The asset had an expected life of eight years and a residual value of 20,000,000.

Straight-line depreciation is used. The company’s financial year ends on 31

December.

At 31 December 20X8, the estimated remaining life of the asset from that date is

now expected to be only three more years, but the residual value is unchanged.

What is the carrying amount of the asset as at 31 December 20X8?