Acca financial Accounting (FA) Study Text ac ca (FA)

What was the profit or loss on disposal of the asset? 

$________ profit/loss* 

*delete which does not apply 

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PRACTICE QUESTIONS 

468

 

KAPLAN PUBLISHING

 

24  Giles bought a new machine from abroad. The machine cost $100,000 

and delivery and installation costs were $7,000. Testing it amounted to 

$5,000. Training employees on how to use the machine cost of $1,000. 

What amount should be capitalised as the cost of the machine for 

inclusion in the statement of financial position? 

$________ 

25  Joseph’s machinery cost account showed a balance of $5,000 at 

1 January 20X5. During the year he had the following transactions: 

28 February  

Disposed of machine costing $300 

31 March  

Acquired machine costing $1,000 

1 November  

Disposed of machine costing $600 

Joseph depreciates machines at a rate of 10% pa on the straight-line 

basis based on the number of months’ ownership.