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    ACG4 A Correction Du 27.20

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    chaima touis
    This document discusses depreciation methods and the accounting entries for asset sale. It provides the depreciation charge and net book value calculations for four depreciation methods - straight line, reduced balance, units of output, and sum of years digits - over multiple years for an asset originally costing 112,000 with a salvage value of 12,000. It also lists the journal entries required to record the sale of the asset for 80,000, including an accounting for the 750 loss on sale.

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    ACG4 A Correction Du 27.20

    Uploaded by

    chaima touis
    8 views4 pages
    This document discusses depreciation methods and the accounting entries for asset sale. It provides the depreciation charge and net book value calculations for four depreciation methods - straight line, reduced balance, units of output, and sum of years digits - over multiple years for an asset originally costing 112,000 with a salvage value of 12,000. It also lists the journal entries required to record the sale of the asset for 80,000, including an accounting for the 750 loss on sale.

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    ACG4 a Correction Du 27.20

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    This document discusses depreciation methods and the accounting entries for asset sale. It provides the depreciation charge and net book value calculations for four depreciation methods - straight line, reduced balance, units of output, and sum of years digits - over multiple years for an asset originally costing 112,000 with a salvage value of 12,000. It also lists the journal entries required to record the sale of the asset for 80,000, including an accounting for the 750 loss on sale.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    8 views4 pages

    ACG4 A Correction Du 27.20

    Uploaded by

    chaima touis
    This document discusses depreciation methods and the accounting entries for asset sale. It provides the depreciation charge and net book value calculations for four depreciation methods - straight line, reduced balance, units of output, and sum of years digits - over multiple years for an asset originally costing 112,000 with a salvage value of 12,000. It also lists the journal entries required to record the sale of the asset for 80,000, including an accounting for the 750 loss on sale.

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    of 4

    Correction exercice 27,20

    Question 1 - Depreciation charge and net book value

    1- Straight line method


    Depreciation charge Détail
    Year N 18750 =(112000-12000)/4*9/12
    Year N+1 25000 =(112000-12000)/4
    Year N+2 25000 =(112000-12000)/4
    Year N+3 25000 =(112000-12000)/4
    Year N+4 6250 =(112000-12000)/4*3/12

    2 - Reduced balance Method


    42.79% = 1-(12000/112000)^(1/4)

    Depreciation charge Détail


    Year N 47,922 =112000*42,79%
    Year N+1 27,417 =64078*42,79%
    Year N+2 15,686 = 36661*42,79%
    Year N+3 8,974 = 20974*42,79%

    3 - Units of output method


    Depreciation charge Détail

    Year N 20000 =(112000-12000)*4000/20000


    Year N+1 25000 =(112000-12000)*5000/20000
    Year N+2 25000 =(112000-12000)*5000/20000
    Year N+3 25000 =(112000-12000)*5000/20000
    Year N+4 5000 =(112000-12000)*1000/20000

    4- SOTYD method
    nombre de digits 10 =4+3+2+1

    Depreciation charge Détail

    Year N 40000 =(112000-12000)*4/10


    Year N+1 30000 =(112000-12000)*3/10
    Year N+2 20000 =(112000-12000)*2/10
    Year N+3 10000 =(112000-12000)*1/10

    Question 2 - Booking entries following the sale of the asset

    Sale on 30 of June N +1
    N depreciation 18750
    N+1 depreciation 12500 = 25000*6/12
    Accumulated depreciation 31250

    Net book value= 80750 =112000-31250


    sale 80000

    Gain/loss on sale -750 = 80000-80750


    At sale date
    Sortie de l'immo de l'actif du bilan
    D/ 2815 31250
    D/227 compte d'attente 80750
    C/ 215 112000
    Vente de l'immos
    D/467 débiteurs divers 80000
    C/227 80000

    At closing date
    on solde le compte d'attente
    D/ 675 750
    C/ 227 750
    Net book value Détail
    93250 =112000-18750
    68250
    43250
    18250
    12000

    Net book value Détail


    64,078 = 112000-47922
    36,661
    20,974
    12,000

    Net book value Détail

    92000 =112000-20000 5
    67000
    42000
    17000
    12000

    Net book value Détail

    72000 =112000-40000
    42000
    22000
    12000
    loss

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