UK Accounting question regarding cash

Joined
Aug 11, 2016
Messages
1
Reaction score
0
Country
United Kingdom
Hello everyone,

I need some help on this accounting question:

For GHI Ltd, how much cash was spent on Property and Plant this year if plant (nbv £1000) was sold & Plant yearly depreciation is £2000. [No dep'n on property]. Extra data given :

This Year :
Property at cost - £6,000
Plant at nbv - £5,000

Last year :
Property at cost - £3,000
Plant at nbv - £4,000


I found £7,000 (£3,000 for Property and £4,000 for Plant (4000 - 2000 -1000 = 1000, and 5000 -1000 = 4000) but it is not one of the options of the MCQ. It's either a - 2000 ; b - 4000 ; c - 6000 ; d - none of these

I'm reluctant to choose answer d because it's usually never "none of these"...

If someone could help me out, that would be very nice.
Thank you in advance!
 
Joined
Jul 30, 2016
Messages
10
Reaction score
0
Country
Malaysia
if i may, express my thoughts about this question. My thoughts might be wrong or might be right.
Lady Roxane,
Truthfully, if i face this question, i would go with "b" rather.
Because you mention that the plant being sold. if the plant for some reason was being sold, it straight hits your disposal account and the costs cancels from there.
Thus, the answer is $3k + $1k = $4k
Yours
 
Last edited:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,631
Messages
27,576
Members
21,373
Latest member
datanalyticscourse

Latest Threads

Top