The following balances at 1/01/17 are taken from the books of Diamond Ltd whose financial statements are prepared to 31 December each year. P Land @ cost 1,000,000 Buildings @ cost 500,000 Buildings (Accumulated depreciation) 210,000 Plant & equipment @ cost 40,000 Plant & equipment (Accumulated depreciation) 24,000 The company's depreciation policies are as follows. Depreciation is not charged on Land. Building has depreciation provided at 2% per annum on cost on the straight line basis. Plant & equipment its depreciation is provided at 25% per annum on the reducing balance basis. A full year's deprecation is charged in the year of acquisition of all assets and none in the year of disposal. During the year to 31/12/17 the below transactions took place. 1/03/17 Office equipment with a cost of P8,000 with a net book value of P2,000 was sold for P3,000. 10/06/17 The office equipment which was purchased at a cost of P16,000 was to replace some old items which were given in part exchange. The agreed part exchange value was P4,000 and its original cost was P8,000 and had a net book value of P2,000. The company paid a balance of P12,000 cash. 8/10/17 The building was extended at a cost of P50,000. In preparing the financial statements at 31/12/17, land was revalued upwards with P200,000 to reflect the recent market survey. Required: Do the Property, Plant&Equipment statement for Diamond Ltd as it should appear in the explanatory notes for the financial statements.
The following balances at 1/01/17 are taken from the books of Diamond Ltd whose financial statements are prepared to 31 December each year.
P
Land @ cost 1,000,000
Buildings @ cost 500,000
Buildings (
Plant & equipment @ cost 40,000
Plant & equipment (Accumulated depreciation) 24,000
The company's depreciation policies are as follows.
- Depreciation is not charged on Land.
- Building has depreciation provided at 2% per annum on cost on the straight line basis.
- Plant & equipment its depreciation is provided at 25% per annum on the reducing balance basis.
- A full year's deprecation is charged in the year of acquisition of all assets and none in the year of disposal.
During the year to 31/12/17 the below transactions took place.
1/03/17 Office equipment with a cost of P8,000 with a net book value of P2,000 was sold for P3,000.
10/06/17 The office equipment which was purchased at a cost of P16,000 was to replace some old items which were given in part exchange. The agreed part exchange value was P4,000 and its original cost was P8,000 and had a net book value of P2,000. The company paid a balance of P12,000 cash.
8/10/17 The building was extended at a cost of P50,000.
In preparing the financial statements at 31/12/17, land was revalued upwards with P200,000 to reflect the recent market survey.
Required:
Do the Property, Plant&Equipment statement for Diamond Ltd as it should appear in the explanatory notes for the financial statements.
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