PPE Tangible NCA Cost and Depreciation Accounting Questions

Jul 17, 2026

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Tangible non-current asset and intangible asset accounting questions focus on measurement, recognition, depreciation, amortisation, impairment, and rental income treatment. The content covers the correct cost components for a printing machine including installation and training, treatment for intangible assets with indefinite useful lives, and impairment review logic. It also tests disposal and depreciation effects on carrying amounts, correct rental income figures from rent received in advance and rent owing, and profit impact of posting errors in accounting records. Additional problems address capital changes and irrecoverable debt and allowance calculations.

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Scanned by TapScanner # 七 I Beck receives rent for subletting part of its office premises to a number of tenants.In the vear ended 31December 20X6 Beck received cash of $318.600 from its tenants.Details of rent in advance and inarrears at the beginning and end of 20X6 are as follows at a cost of$1,000. What should be the cost of the machine inW Co's statement of financial position?_ 7What is the correct accounting treatment for an intangible asset with an indefinite useful life?AIt is recognised at cost for as long as the entity has the intangible asset. 31 December 31 December 20X620X5 BIt is recognised at cost and is subject to an annual impairment review. lt is recognised at cost and the entity must make an estimate of estimated useful life so that it can beamortised. $S 24,600 DIt cannot be recognised as an intangible asset as it would not be possible to calculate an annualamortisation charge. Rent received in advance28,400 Rent owing by tenants18,300 16,900 8 A business had non-current assets with a carrying amount of S50,000 at the start of the financial year.During the year the business sold assets that had cost $4,000 and had been depreciated by S1,500.Depreciation for the year was S9,000.The carrying amount of assets at the end of the financial year wasS46,000.e What figure for rental income should be included in Beek's profit or loss for 20X6?A$341,000B$336,400C$316,200xD$300,80 How much cash has been invested in non-current assets during the year? 9 Holly began trading on 1 July 20X6.The business is now preparing its financial statements for the yearended 30 June 20X7.Rent is charged for the year from 1 April to 31 March,and was $1,800 for the yearended 31 March 20X7 and $2,000 for the year ended 31 March 20X8.Rent is payable quarterly inadvance on 1 March,1 June,1 September and 1 December. 2 A business purchased a motor car on 1 July 20X6 for S20,000.It is to be depreciated at20%per year on the straight line basis,assuming a residual value at the end of five years of84,000,with a proportionate depreciation charge in the year of purchase.The S20,000 cost was correctly entered in the cash book but posted to the debit of the motorvehicles repairs account.How will the business profit for the year ending 31 December 20X6 be affected by theegror?Understated by $18,400Understated by $16,800Uaderstated by $18,000七Overstated by$18,400 X What is the charge to Holly's statement of profit or loss for rent for the year ended 30 June 20X7? 10A business had opening and closing capital at 1 January and 31 December 20X9 of S75,600 andS73,800 respectively.During the year,the proprietor introduced additional capital ofS17,700 andwithdrew cash of S16,300.What was the profit or loss made by the business in 20K9? 11 Trigger Co makes the following purchases in the year ending 31 December X5: | Dates: | Units | S/unit | Total (S) | | --- | --- | --- | --- | | 04.01.X5 | 300 | 2.30 | 690 | |

Jul 17, 2026

Upload by Quinn