Question for CA, ICAB, ICAI, ACCA: Professional stage: Knowledge Level Subject: Accounting Non-current assets and depreciation (Chapter-11)

Professional stage: Knowledge Level
Subject: Accounting
Non-current assets and depreciation (Chapter-11)

Q1.  What items include for calculating the cost of non-current assets? (Page-274-section

overview)

Q2.  What do you mean about Part exchange value of asset? (P-274, S-1.2)

Q3.  What is depreciation? (P-275, s-1.4)

Q4.  What factors are relevant to calculate the depreciation? (P-275, S-1.4) Q5.  ABC enterprises purchased a new car for office use. The invoice received contained the following information: Particulars Amount (Tk.) Price of the car  18,720 Part-exchange allowance of old car  (6,200) Amount due  12,520 It is estimated that the new car have useful life three years and a residual of Tk.6,360/-.

Calculate the total amount of depreciation for new car.

Q6.  When depreciation is charged, what things must be accounted for? (P-277, S-3)

Q7.  A business has an accounting year from January to December and purchases a non-

current asset on April 01, 2008 at a cost of Tk.24,000/-. The expected life of the asset is

four years, and its residual value is nil. What is the depreciation charge for the year to

December 31, 2008?

Q8.  What is accounting for depreciation? (P-284, S-4)

Q9.  What do you mean revaluation of non-current assets and journal entries for revaluation?

(P-288, S-5 &5.1)

Q11.  What are principles behind calculating the net profit or loss on disposal? (P-290, S-6.1)

Q12.  What data kept in an asset register? (P-297, S-7.1)

Q13.  Definition: Useful life, depreciation, reducing balance depreciation, accumulated

depreciation, carrying amount, asset register, purchased goodwill