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Cash flow statement
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In this illustration 12, why they are adding the prov for depreciation amount to the value of plant and machinery
Answers (11)
Thread Starter
vs navinIam asking about the 200000 in opening balance and 320000 in closing
What is your doubt,covey it clearly
mani charan
What is your doubt,covey it clearly
I have already stated clearly. Read properly. Iam asking about the 200000 and 320000 in opening balance and closing balance of plant and machinery respectively
Thread Starter
vs navinI have already stated clearly. Read properly. Iam asking about the 200000 and 320000 in opening balance and closing balance of plant and machinery respectively
To show the value of pm at cost, and to arrive at the correct value of profit or loss on sale of pm as it is a bal.fig
mani charan
To show the value of pm at cost, and to arrive at the correct value of profit or loss on sale of pm as it is a bal.fig
If you are still confused, calculate the loss on sale by eliminating the provision part (all 200000,320000,24000), then you can make out the difference
mani charan
If you are still confused, calculate the loss on sale by eliminating the provision part (all 200000,320000,24000), then you can make out the difference
In question number 5, they have included only depreciation pertaining to sale. Why they have not included it in opening and closing balance
The solution given in study material can be confusing. Follow the below steps 1. Transfer the cost of fixed asset sold to a separate account called "Fixed Asset-Disposal" Account Dr. FA Disposal A/c Cr. Fixed Asset Account 2. Transfer depreciation pertaining to fixed asset sold to FA disposal account Dr. Provision for Depreciation Cr. FA Disposal Account 3. Amount realised on sale Dr. Bank Cr. FA Disposal Account 4. Balancing figure will be gain or loss.
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