Photo AI
Depreciation and Revaluation of Fixed Assets The following details were taken from the books of Moondrop Ltd: 01/01/2012 Buildings at cost amounted to €720,000 - Leaving Cert Accounting - Question 2 - 2014
Question 2
Depreciation and Revaluation of Fixed Assets The following details were taken from the books of Moondrop Ltd: 01/01/2012 Buildings at cost amounted to €720,000. 0... show full transcript
Worked Solution & Example Answer:Depreciation and Revaluation of Fixed Assets The following details were taken from the books of Moondrop Ltd: 01/01/2012 Buildings at cost amounted to €720,000 - Leaving Cert Accounting - Question 2 - 2014
Step 1
The Buildings Account for the two years 2012 and 2013
Answer
To construct the Buildings Account for Moondrop Ltd for the years 2012 and 2013:
Buildings Account
Date | Details | €
-------------|---------------------|------------
01/01/12 | Balance b/d | 720,000
01/06/12 | Bank | 130,000
01/07/12 | Disposal | (120,000)
-------------|---------------------|------------
31/12/12 | Balance c/d | 730,000
-------------|---------------------|------------
01/01/13 | Balance b/d | 730,000
31/12/13 | Balance c/d | 800,000
Step 2
The Provision for Depreciation Account for the two years 2012 and 2013
Answer
To create the Provision for Depreciation Account for Moondrop Ltd for the years 2012 and 2013:
Provision for Depreciation Account
Date | Details | €
-------------|-------------------------|------------
01/01/12 | Balance b/d | 86,000
01/07/12 | Disposal | 50,000
31/12/12 | Balance c/d | 68,000
-------------|-------------------------|------------
01/01/13 | Balance b/d | 68,000
31/12/13 | P & L Dep. | 32,000
-------------|-------------------------|------------
31/12/13 | Balance c/d | 106,000
Step 3
The Buildings Disposal Account for the year ended 31/12/2012
Answer
To outline the Buildings Disposal Account for the year ended 31/12/2012:
Disposal of Buildings Account
Date | Details | €
-------------|----------------------|------------
01/07/12 | Buildings | 120,000
01/07/12 | Profit on Disposal | 15,000
-------------|----------------------|------------
| Bank | 95,000
Step 4