Cau 3

Directly attributable costs include:

- purchase price

- delivery costs

- stamp duty and import duties (and irrecoverable VAT on cars)

- costs of preparing the site for installation and assembly of the asset

- professional fees, such as legal and architects' fees

- costs of testing whether the asset is functioning

Caau 8:

Step 1: Identify the contract with the customer

Step 2: Identify the separate performance obligations

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations

Step 5: Recognise revenue when (or as) a performance obligation is satisfied

Caau 10

Prepayments are payments for expenses for that are not yet incurred.

Caau 14

All tangible non-current assets except freehold land have a finite useful life

Caau 23

Provisions are liability of uncertain timing or amount of a company. Provisions

are shown separately from other liability because the amount of a provision can
be measured only by using a substantial degree of estimation.

Câu 1:

Statement of profit or loss: (3/6  9,000) + 12,000 + (3/12  11,196) 19,299

Câu 9
Purchase price 500,000

Adaptation 27800

Legal costs 2400

469800

Câu 11

Cost 1 July 20X3 200,000

Depreciation to 30 June 20X4 (30,000)

170,000

Depreciation to 30 June 20X5 (25,500)

144,500

Less Proceeds (54,800)

Loss on sale 89,700

Câu 12

Debit with trade in allowance (to get to total cost of new vehicle of £4,800)
3,430 DR

Credit with cost of old vehicle (to remove cost of old vehicle) (6,000) CR

Net adjustment (1710) CR

Câu 10

Cost 30,000

Accumulated depreciation to 31 December 20X3 ( 30,000/120  40) (10,000)

Carrying amount at date of change 20,000

Depreciation for 20X4 (20,000  10%) (2,000)

18,000

Depreciation for 20X5 @ 10% 1800

Câu 20

Profit appropriation statement

Ratio 3: 2: 1

A B C Total £ £ £ £

Salary 0 0 5,000 5,000

Share of residual profit (£23,000 – £5,000) in 3:2:1 9,000 6,000 3,000 18,000
Initial profit share 9,000 6,000 8,000 23,000

Reallocation from Anna to Brian (13,000) 13,000 0 0

Total profit share (4,000) 19,000 8,000 23,000