Accounting 9706 · AS & A Level · Accounting for non-current assets
Accounting for non-current assets — practice question
King supplied the details of non-current assets at 1 April 2015, along with the transaction information for the year.
(a)[1]
Calculate the total depreciation expense for buildings for the year ended 31 March 2016.
(b)[3]
Calculate the overall depreciation charge for plant and machinery for the year ended 31 March 2016.
(c)[8]
Prepare an extract from the statement of financial position as at 31 March 2016 showing non-current assets.
(d)[3]
State three reasons why depreciation occurs.
Worked solution & mark scheme
This 15-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The calculation shown is $(252 000 - 182 000 \times 2%) = $1 400” …