PPE

Question 1

If Date of addition and date of disposal are not given in the question

Answer 1

Assume Day 1 of year

Question 2

Change is estimate
Start of the year
During the year
End of the year

Answer 2

Kisi b din ho saal k pehly din sy assume krna

Question 3

Fully Depreciated Asset

Answer 3

Depreciation
1.On Opening
(op cost of all assest -op cost of disposed asset-op cost of fully dep asset)
2.On fully dep asset
if dep charge on FDA in this year
Fully dep hony waly asset ko mazeed istemal kar sakty but dep ni kar sakty Par dep niklty huay On opening my sy Op cost of fully dep asset tab tak minus hogi jab tak asset dispose ni ho jata
``On disposal
BV=0 OR
Asset cost=Acc dep on disposal
isky upr jo b mila gain hoga wo

Question 4

If a surplus balance is displayed in the working of a revalued asset….
how many entries of dep and disposal are required ?

Answer 4

2 entries of Depreciation expense
Dep Dr
Acc dep Cr
Revaluation surplus Dr
Retained earning Cr
2 Entries of Disposal
Acc dep Dr
(Date of revaluation
—Date of sale)
Cash rec Dr
P&L Dr
Asset Cr
(latest FV)

Question 5

If a Loss balance is displayed in the working of a revalued asset
How many entries of dep and disposal are required?

Answer 5

1 Entry of Dep
Dep Dr
Acc Dep Cr
1 entry of Disposal
Acc dep(D.O.R-D.O.S) Dr
Cash Dr
P&L Dr
Asset(latest Fv) Cr

Question 6

If the question states that 10 buildings were purchased for Rs 500, how do we determine the price of one building?

Answer 6

price of 1 building=500/10

Question 7

To find comparative figures
Gross Carrying amount
Opening ? (1-1-07)
Acc dep
Opening?

Answer 7

Cost Opening……
1-1-07 Or 31-12-06
Q. kia asset kabhe revalue hua … #1-12-06 ya us sy pehly??????
if
1.NO
Asset a/c =original cost of asset
Acc dep a/c=D.O.P sy aj tak ki dep prhi ho gi

2.Yes
Asset a/c = Latest revalued amount
Acc depa/c= last revaluation sy aj tak ki dep prhi hogi

Question 8

Sub note of Revaluation
If building is at cost model
(In case of disposal)

Answer 8

Cost
Acc dep
{Price of 1 building/life *no of years passed }
NBV