Example
[In case the fixed assets had not been shown by original costs but only by WDV,the recorded details of Example 19.2 would be as under.]The information available regarding fixed assets for the year 1997-98 are as under :
Additional Infonnation
A new plant ATX 2 was purchased during the year at a cost of Rs. 1,08,000 to replace for the performance of ATX 1, on which Rs. 22,300 was charged as depreciation during the year leaving WDV of Rs. 85,700.Analyse the information and prepare the necessary statements.
Solution
WDV of fixed assets as at beginning, less for WDV-of ATX 1 sold during the year,This, corrected for depreciation charged is Rs, 3,90,000 less 40,000 = Rs. 3,50,000.during the year, is Rs. 3,50,000, less Rs. 35,000 = Rs. 3,15,000. Hence, additional assets purchased during the year, inclusive of ATX 2, have a total WDV of (4,87,000 - 3,15,000) = Rs. 1,72,000, as at the end of the year. Of this, ATX 2 accounts for Rs. 85,700. Hence, additional equipment, besides ATX 2, must have also been purchased during the year, whose WDV at the end of the year must be (1,72,000 less 85,700) Rs. 86,300.
This information may be put into, or, better still, inferred from, the following fixed assets account accompanied by a scrapped asset account and accumulated depreciation account.
[In case the fixed assets had not been shown by original costs but only by WDV,the recorded details of Example 19.2 would be as under.]The information available regarding fixed assets for the year 1997-98 are as under :
Additional Infonnation
A new plant ATX 2 was purchased during the year at a cost of Rs. 1,08,000 to replace for the performance of ATX 1, on which Rs. 22,300 was charged as depreciation during the year leaving WDV of Rs. 85,700.Analyse the information and prepare the necessary statements.
Solution
WDV of fixed assets as at beginning, less for WDV-of ATX 1 sold during the year,This, corrected for depreciation charged is Rs, 3,90,000 less 40,000 = Rs. 3,50,000.during the year, is Rs. 3,50,000, less Rs. 35,000 = Rs. 3,15,000. Hence, additional assets purchased during the year, inclusive of ATX 2, have a total WDV of (4,87,000 - 3,15,000) = Rs. 1,72,000, as at the end of the year. Of this, ATX 2 accounts for Rs. 85,700. Hence, additional equipment, besides ATX 2, must have also been purchased during the year, whose WDV at the end of the year must be (1,72,000 less 85,700) Rs. 86,300.
This information may be put into, or, better still, inferred from, the following fixed assets account accompanied by a scrapped asset account and accumulated depreciation account.
FIXED ASSETS ACCOUNT
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