Help please? Calculating accumulated depreciation!

Lollipop95

I'm trying to revise a question on preparing the balance sheet. I've printed out the actual answer to the question so I can do it myself and make sure I know where the figures are coming from but I've completely hit a wall and can't find where the accumulated depreciation figure is coming from My head is melted and I'm having no luck with Google

The balance sheet with question is part of a Trading & Profit loss account. Here's the info given in the trial balance;

Land and Buildings €320,000
Provision for Depreciation @1/1/14: Land and Buildings - €20,000

I then worked out the Depreciation of Land and Buildings to be €6,400 as it says in the question that deprecation on land and buildings should be 2% per annum straight line (on cost)

That all worked out fine until I got to the trial balance part of the question. There are 3 sections:

Cost
Accumulated Depreciation
NBV (???)

Now I've worked out the cost as €320,000 and the answer sheet verifies that this is correct. However, I can't work out the accumulated deprecation. The sample answer says the accumulated deprecation is €26,400.

I've done numerous calculations and still can't get the figure or work out where on earth it's coming from Someone please help!

Lockedout2

Accumulated means the aggregate of the amount ie amount at start plus current year charge €20,000 + €6,400.

Cumulative would be another way of putting it.

Lollipop95

Lockedout2 wrote: »

Accumulated means the aggregate of the amount ie amount at start plus current year charge €20,000 + €6,400.

Cumulative would be another way of putting it.

Thanks so much! That makes so much more sense, it worked out for the remaining fixed assets (fixtures and fittings & motor vehicles) too. Again, thanks a lot! Repeating this exam in August and it's the balance sheet that always catches me out!

Lollipop95

Stuck..again!

I'm at the 'Current Assets' part of the balance sheet and the figures according to the sample answer are


Closing stock - 21210
Trade Receivables - 82750
Less provision for bad debts - nothing written
Prepayments - 770
Bank - nothing written, just a - sign
Cash - 8000

Now I presumed I'd add these up and get the answer. The booklet says the answer is 109,420. But when I added all of these figures together I got 112,730.

What am I doing wrong? A misprint maybe?

superb choice of username

Lollipop95 wrote: »

Stuck..again!

I'm at the 'Current Assets' part of the balance sheet and the figures according to the sample answer are


Closing stock - 21210
Trade Receivables - 82750
Less provision for bad debts - nothing written
Prepayments - 770
Bank - nothing written, just a - sign
Cash - 8000

Now I presumed I'd add these up and get the answer. The booklet says the answer is 109,420. But when I added all of these figures together I got 112,730.

What am I doing wrong? A misprint maybe?

Would you post a scan of the question?

jjjd

Lollipop95 wrote: »

Stuck..again!

I'm at the 'Current Assets' part of the balance sheet and the figures according to the sample answer are


Closing stock - 21210
Trade Receivables - 82750
Less provision for bad debts - nothing written
Prepayments - 770
Bank - nothing written, just a - sign
Cash - 8000

Now I presumed I'd add these up and get the answer. The booklet says the answer is 109,420. But when I added all of these figures together I got 112,730.

What am I doing wrong? A misprint maybe?

Is the provision for bad debts 4% by any chance? 4% of 82,750 is your difference of 3,310. Perhaps you forgot to deduct this? It might state this in the notes to the accounts?

Lollipop95

jjjd wrote: »

Is the provision for bad debts 4% by any chance? 4% of 82,750 is your difference of 3,310. Perhaps you forgot to deduct this? It might state this in the notes to the accounts?

Thank you very much jjjd! Just checked this thread now and when I did that calculation it did indeed amount to 109,420 The provision for bad debts was 4%! Many thanks, this forum is a lifesaver!