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Self-test
(Text book contains questions A8.1 to A8.17)
JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is 10 years,
at which point it is anticipated that the excavator will have a residual value of £6,000.
Financial Accounting
A major electronics company has acquired a green field site to build a new factory. The land
costs £1.5 million, together with professional fees of £100,000. The site requires remedial work
costing £500,000 on old mine shafts before any building can commence. The company plans a
massive advertising drive to promote the factory and to recruit skilled personnel. An initial
package of £400,000 has been agreed with their advertising agents for this purpose.
Financial Accounting
Financial Accounting
£
Land and
buildings
Plant and
equipment
Total
£m £m £m
Net book value, 31.12.Year 1 ? 299 383
Financial Accounting
Financial Accounting
Application
(Text book contains questions B8.1 to B8.6)
Individual exercise
Group exercise
Problem solving and evaluation
(Text book contains questions C8.1 to C8.3)
For guidance, see end-of-chapter question C8.1
Financial Accounting
A blank spreadsheet is provided at the end of this section.
For guidance, see end-of-chapter question C8.2
A
blank spreadsheet is provided at the end of this section.
For guidance, see end-of-chapter question C8.3
Financial Accounting
Assets Ownership interest
Transaction or event Machine at
cost
Accumulated
depreciation of
van
Cash Capital
contributed
or withdrawn
Revenue
minus
expenses
Financial Accounting
Assets Ownership interest
Transaction or event Machine at
cost
Accumulated
depreciation of
van
Cash Capital
contributed or
withdrawn
Revenue
or gain
(expense
or loss)
Financial Accounting
Craigielaw plc
Making use of the Report and Accounts of Craigielaw plc, answer the following questions.
(Page numbers refer to the Report and Accounts of Craigielaw.)
Craigielaw plc Safe and Sure plc
Year 7 Year 6 Year 6 Year 2 Year 2
£m £m % % £m %
Tangible non-current (fixed) assets Craigielaw plc
As at 31 Dec Year 7 Cost or valuation Net book value
£m % £m %
Financial Accounting
Tangible non-current (fixed) assets Safe and Sure plc
As at 31 Dec Year 2 Cost or valuation Net book value
£m % £ %
Craigielaw plc Safe and Sure plc
Year 7 Year 6 Year 2
Continuing operations £m £m £m
Craigielaw plc Year 7 Year 6 Year 5 Year 4 Year 3
£m £m £m £m £m
Financial Accounting
Safe and Sure plc Year 2
£m
Self-test
Text book contains solutions to questions A8.1 to A8.17
Financial Accounting
Calculation for A8.18 and A8.19
Financial Accounting
Financial Accounting
Financial Accounting
Financial Accounting
Application
Financial Accounting
Statement of financial position (balance sheet) at 31 December Year 1
£
Income statement (profit and loss account) for the year ended
31 December Year 1
Financial Accounting
Statement of financial position (balance sheet)
At 31 December Year 2
Income statement (profit and loss account) for the year ended
31 December Year 2
Financial Accounting
B8.4
Financial Accounting
B8.5
Financial Accounting
B8.6. Table of depreciation charge
Financial Accounting
Problem solving and evaluation
Statement of financial position (balance sheet)
at 31 December Year 3
Income statement (profit and loss account)
for the year ended 31 December Year 3
Financial Accounting
C8.5 (a) Machine Grinding Company: replacement machine
Financial Accounting
C8.5 (b)
Statement of financial position (balance sheet)
at 31 December Year 4
£
Income statement (profit and loss account)
for the year ended 31 December Year 4
£ £
Financial Accounting
Financial Accounting
Real-world case
Self-test: Supplement
S8.1
(Note that commentary is not included here; it should resemble that given in the Supplement to
the chapter.)
L1 OWNERSHIP INTEREST
Date Particulars Page Debit Credit Balance
Year 1 £ £ £
Financial Accounting
L2 CASH
Date Particulars Page Debit Credit Balance
Year 1 £ £ £
L3 MACHINE AT COST
Date Particulars Page Debi
t
Credi
t
Balance
L4 ACCUMULATED DEPRECIATION
Date Particulars Page Debit Credit Balance
Craigielaw plc
Financial Accounting
D8.2 Significance of each type of property, plant and equipment
Craigielaw: data from note 12 page 31:
D8.3 Depreciation as a percentage of total expenses
Financial Accounting
D8.4 Capital expenditure and depreciation
Craigielaw plc: data from summary of financial data on page 21:
Financial Accounting
D8.6 On page 28, the accounting policy note on Property, plant and equipment assets and
depreciation states:
Financial Accounting
Financial Accounting
Financial Accounting
Financial Accounting
