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BA4 Mock Exam

  • Affiliate
  • 27 posts
  • # 116923

Hi, Quick question.

I am working through the computerised part of the mock exam and need help. Question is relating to depreciation of assets.

Motor Vans are depreciated at 25% per year based on the reducing balance. The figures I have are Motor Vans 68,000 DR and Motor Vans Depreciation 33,184 CR, looking at the answers it should be 8,704. 

Can't work out how I get to that figure.

Paul

  • Member
  • Practice Licence
  • 4 posts
  • # 116924

Hello.
I have deleted my comment as per tutor request.
Charlott

Edited at 16 Jul 2018 12:39 PM GMT

  • Affiliate
  • 27 posts
  • # 116933

Charlott Gove said:

“Hello.
As it is reducing balance you have to subtract the depreciation from the value, which gives the net bookvalue(NBV), then you take 25% from the NBV and that is the years Depreciation.
Charlott”

 Charlott

Thank you.

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