I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

What is the value of the inventory at 31 August 20X1? 

A $172.50 

B $176.25 

C $180.00 

D $187.50 

 

(2 marks) 

34 

What is the correct double entry to record the depreciation charge for a period?  

A DR 

Depreciation 

expense 

 CR 

 

Accumulated 

depreciation 

B DR 

Accumulated 

depreciation 

 CR 

Depreciation 

expense 

 

(1 mark) 

35 

At 31 December 20X4 Q, a limited liability company, owned a building that it had purchased 10 

years ago for $800,000. It was being depreciated at 2% per year on the straight line basis.  

On 1 January 20X5 a revaluation to $1,000,000 was recognised. At this date the building had a 

remaining useful life of 40 years.  

What is the depreciation charge for the year ended 31 December 20X5 and the revaluation