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Reversal Calculation

This document contains 7 problems related to calculating depreciation of assets using the written down value (WDV) and straight line (SL) methods. The problems provide purchase and sale dates and amounts for assets, depreciation rates, and ask to calculate book values on given dates and costs of assets. They range from simple single asset calculations to more complex problems involving multiple assets bought and sold over time by a company.

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Jahanzaib Butt
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63 views2 pages

Reversal Calculation

This document contains 7 problems related to calculating depreciation of assets using the written down value (WDV) and straight line (SL) methods. The problems provide purchase and sale dates and amounts for assets, depreciation rates, and ask to calculate book values on given dates and costs of assets. They range from simple single asset calculations to more complex problems involving multiple assets bought and sold over time by a company.

Uploaded by

Jahanzaib Butt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Commerce Department Baghdad Campus IUB

Revere calculation
Problem #01:
Moosa butt purchased an asset of Rs. 300,000 on 1-07-2015. Moosa butt disposed this asset 31-
3-2019.To depreciate such type of asset moosa butt uses WDV method of depreciation with 25% Page | 1
rate.
Required:
Find book value at 31-12-2018 and 31-03-2019

Problem #02:
A company purchased an asset at 1-06-2014 for Rs. 800000 and sold at 31-12-2020.
Company uses WDV depreciation method at 10%.Company closes its books at 31 Dec each
year.
Required:
Book value at 31-12-2020

Problem #03:
Zainab Butt Ltd. Purchased an asset for Rs. 400,000 at 1-1-2016 and sold the same at 30-09-
2020. Zainbab Butt Ltd. Uses WDV depreciation method with 10% rate.
Required:
Calculate book value at 31-12-2019 and 30-09-2020.

Problem #04:
An asset was purchased at 1-07-2014. Book value was Rs. 240000 at 31-03-2019.Rate of
depreciation is 10% while depreciation method is SL.Calculate cost of the asset.

Problem #05:
An asset was purchased at 1-10-2015.Book value at 31-03-2020 is Rs. 500,000.Year end is 31
December. Depreciation method with 10% rate is WDV. Calculate cost of the asset.
Problem #06:
Balance sheet of Zainab Butt Ltd. shows balance of assets at 1-1-2019 Rs. 1,400,000
accumulated depreciation at this date was Rs. 540,000.
At 1-04-2019 Zainab Butt Ltd purchased a new asset for Rs, 500,000. At 30-06-2019 Zainab
Butt sold an old asset for Rs. 340,000 which was purchased for Rs. 400,000 at 1-07-2017.
At 31st March 2020 an other asset was sold for Rs. 250,000 which was purchased for Rs. 550,000
at 1-10-2015.At the same date a new asset purchases for Rs. 600,0000.
Zainab Butt Ltd uses rate of Depreciation 10% while depreciation method is WDV,Zainab Butt
closes its year at 31st Dec each year.
Required:
Asset A/c and Accumulated Depreciation A/c

From the desk of Jahanzaib Butt


Commerce Department Baghdad Campus IUB
Problem #07:
Balance sheet of Zainab Butt Ltd. shows balance of assets at 1-1-2019 Rs. 1,400,000
accumulated depreciation at this date was Rs. 540,000.
At 1-04-2019 Zainab Butt Ltd purchased a new asset for Rs, 500,000. At 30-06-2019 Zainab
Butt sold an old asset for Rs. 340,000 which was purchased for Rs. 400,000 at 1-07-2017. Page | 2
At 31st March 2020 an other asset was sold for Rs. 250,000 which was purchased for Rs. 550,000
at 1-10-2015.At the same date a new asset purchases for Rs. 600,0000.
Zainab Butt Ltd uses rate of Depreciation 10% while depreciation method is SL ,Zainab Butt
closes its year at 31st Dec each year.
Required:
Asset A/c and Accumulated Depreciation A/c

From the desk of Jahanzaib Butt

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