For example: -10234.35
No other characters, including commas, are accepted.
Which of the following statements may explain the discrepancy?
The $25,000 cost was correctly entered in the cash book but posted to the debit of the motor vehicles repairs account.
How will the business profit for the year ended 31 March 20X9 be affected by the error?
What should be the cost of the machine in the company's statement of financial position?
(A) Dr Accumulated depreciation
Dr Loss on disposal (SPL)
Cr Non-current assets – cost
(B) Dr Accumulated depreciation
Cr Profit on disposal (SPL)
Cr Non-current assets–cost
(C) Dr Accumulated depreciation
Cr Non-current assets
(D) Dr Non-current assets
Dr Accumulated depreciation
Bistro Co purchased a building on 31 December 20X2 for $750,000. At the date of acquisition, the useful life of the building was estimated to be 25 years and depreciation is calculated using the straight-line method. At 31 December 20X8, an independent valuer valued the building at $1,000,000 and the revaluation was recognised in the financial statements. Bistro's accounting policies state that excess depreciation arising on revaluation of non-current assets can be transferred from the revaluation surplus to retained earnings.
Retained earnings $20,000
Revaluation surplus $20,000
Revaluation surplus $12,500
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