CAF-05

Lecture# 18 Lecture # 104 (Over All)

Concept Discussed
User of Ratios and their needs
Class work
Discuss Question Bank Question#3
Discuss Past paper Question#6(Boom Limited)
Ancient Waters Lecture#20 (IAS-16) Hand out
Home Work
Past paper Question#3,4(a)
Past paper Question#7, 8

Lecture# 19 Lecture # 105 (Over All)

Concept Discussed
Output method / Sum digit method to calculate depreciation
Capital maintance concepts

Class work
Notes to the Financial Statement Question Ancient Waters Lecture#20 (IAS-16) Hand out
Interest coverage ratio
Limitation of ratio
Vertical and Historical analysis
Example.1
A company purchased plant on 1.5.15 for Rs. 10000 having a residual valu of Rs.1000. The plant is
capacity to produce 1500 units during its useful life.
The production was as Follows.
2015=200 Units
2016=900 Units
2017=400 Units
Requirement. Calculate Depreciation for all 3 years using output method.

Example.2
A company purchased a Vehicle on 1.3.15 costing Rs.15000 with a residual value of Rs.3000.Useful
life of machine is 3 years.
Requirement: Calculate Depre ciation for all for all the years using sum of years digit method
Question Bank Question#1.3(Carrie star)
Home Work
Reading Chapter#1 ICAP BOOK

Umair Sheraz Utra, ACA Page |1