COST (Rupees in thousands)

Asset Date of
number Asset Description Asset Class Purchase Opening Additions

001-20 Plot 252, Sundar Estate Land 03.11.2019 1,000,000 -

002-20 Factory and admin block Building 05.12.2019 500,000 -

Plastic Injection moulding
003-20 machine # 1 Machinery 10.05.2020 100,000 -
Plastic Injection moulding
001-21 machine # 2 Machinery 01.07.2020 200,000 -
Plastic Injection sealing machine
002-21 #1 Machinery 01.07.2020 250,000 -
30 chairs, 30 tables, cabinets
003-21 and filing systems Furniture 10.11.2020 2,100 -
10 computers, 5 scanners, 3 Computer
004-21 photo copy machines, etc Equipment 03.03.2021 5,200 -

005-21 Suzuki swift - LED 1925 Vehicle 05.05.2021 2,500 -

001-22 25 chairs, 25 tables, cabinets Furniture 10.12.2021 1,500 -

Plastic Injection sealing machine
002-22 #2 Machinery 01.02.2022 - 150,000

003-22 Honda civic - LED 1926 Vehicle 03.04.2022 - 10,000

004-22 Honda city - LED 1926 Vehicle 03.04.2022 - 5,000

005-22 Honda city - LED 1926 Vehicle 03.04.2022 - 5,000

2,061,300 170,000

During the year 2023, propose the details of the following transactions:
1 Four purchases including at least one machinery and one vehicle
2 Disposal of at least 2 assets prior to 2021
3 Disposal of a part of a machine and purchase of a replacement
4 Additional expenditure on any 1 machine that is capitalizable as it revises useful life
5 For the machinery acquired in 2023 that you have proposed above, specify a decommissioning expense that needs to be co
6 Details of revaluation of the land acquired in 2019
7 Plastic Injection moulding machine # 2 caught fire and is now working considerably slowly. With assumed figures, run an im

Requirement:
proposed
above
depreciation
charge)
clearly in
below tabs
 FOR THE YEAR ENDING JUNE 30, 2022

OST (Rupees in thousands) ACCUMULATED DEPRECIATION (Rupees in thousands)

Depreciaton for the
Deletions Closing Opening period / Impairment Disposals Closing Acc Dep NBV

- 1,000,000 - - - - 1,000,000

- 500,000 47,500 30,000 - 77,500 422,500

- 100,000 13,458 8,500 - 21,958 78,042

- 200,000 17,000 17,000 - 34,000 166,000

- 250,000 21,250 21,250 - 42,500 207,500

- 2,100 280 420 - 700 1,400

- 5,200 433 1,192 - 1,625 3,575

- 2,500 50 300 - 350 2,150

- 1,500 - 175 - 175 1,325

- 150,000 - 6,375 - 6,375 143,625

- 10,000 - 300 - 300 9,700

- 5,000 - 150 - 150 4,850

- 5,000 - 150 - 150 4,850

- 2,231,300 99,972 85,812 - 185,783 2,045,517

oning expense that needs to be considered and included in its cost today

y. With assumed figures, run an impairment test that results in an impairment.

 Depreciation Depreciation Rate for Reducing Residual
Location Charge method Balance Useful life Value

Plant Cost of Sale N/A N/A

Plant Cost of Sale Straight Line N/A 15 10% of cost

Plant Cost of Sale Straight Line N/A 10 15% of cost

Plant Cost of Sale Straight Line N/A 10 15% of cost

Plant Cost of Sale Straight Line N/A 10 15% of cost

Plant Cost of Sale Straight Line N/A 5 Nil

Reducing
Plant Cost of Sale Balance 25% 3 Nil

Plant Cost of Sale Straight Line N/A 5 40% of cost

HR/Accounts Admin Straight Line N/A 5 Nil

Plant Cost of Sale Straight Line N/A 10 15% of cost

CEO Admin Straight Line N/A 5 40% of cost

CFO Admin Straight Line N/A 5 40% of cost

GM Admin Straight Line N/A 5 40% of cost

 COST (Rupees in thousands)

Asset Date of
number Asset Description Asset Class Purchase Opening Additions
Plot 252, Sundar
001-20 Estate Land 03.11.2019 1,000,000 -
Factory and admin
002-20 block Building 05.12.2019 500,000 -

Plastic Injection
003-20 moulding machine # 1 Machinery 10.05.2020 100,000 25,000

Plastic Injection
001-21 moulding machine # 2 Machinery 01.07.2020 200,000 -
Plastic Injection
002-21 sealing machine # 1 Machinery 01.07.2020 250,000 -

30 chairs, 30 tables,
cabinets and filing
003-21 systems Furniture 10.11.2020 2,100 -

10 computers, 5
scanners, 3 photo Computer
004-21 copy machines, etc Equipment 03.03.2021 5,200 -
Suzuki swift - LED
005-21 1925 Vehicle 05.05.2021 2,500 -

25 chairs, 25 tables,
001-22 cabinets Furniture 10.12.2021 1,500 -
Plastic Injection
002-22 sealing machine # 2 Machinery 01.02.2022 150,000 90,000

Honda civic - LED

003-22 1926 Vehicle 03.04.2022 - 10,000

004-22 Honda city - LED 1926 Vehicle 03.04.2022 - 5,000

005-22 Honda city - LED 1926 Vehicle 03.04.2022 - 5,000

Toyota Altis - LEA 18-08-2022 6000
001-23 7221 Vehicle

002-23 Printing Machine Machinery 25-01-2023 1,000 241

40 Chairs, 20 Tables, 5 13-03-2023
003-23 Furniture 3,000
004-23 Plot 15, Sultan Town, L 25-06-2023
Land 50,000

Purchasing of new assets in financial year 2023

18-08-2022 Toyota Altis - LEA-7221 6000

Cash

25-01-2023 Printing Machine 1000

Cash

13-03-2023 40 Chairs, 20 Tables, 5 Cupboards 3000

Account Payable

25-06-2023 Plot 15, Sultan Town, Lahore 50000

 Accumulated Accumulated
Asset Class Cost
Depreciation Impairment

Land 1,200,000 0 0
Building 500000 500000 0
Machinery 701,000 84,607 13,250
Furniture 6,600 1,795 0
Computer
5,200 2,529 0
equipment
Vehicle 26,000 4,100 0
Total Assets 2438800 593031.08 13250
 FOR THE YEAR ENDING JUNE 30, 2023

Rupees in thousands) ACCUMULATED DEPRECIATION (Rupees in thousands)

Depreciaton for
the period /
Deletions Closing Opening Impairment Disposals Closing Acc Dep Revaluation

150000
- 1,000,000 - - - -

- 500,000 77,500 22,500 420,000 (320,000)

- 125,000 21,958 9,609 - 31,567

- 200,000 34,000 13,250 - 47,250

200000
- 250,000 42,500 14,167 (143,333)

- 2,100 700 420 - 1,120

- 5,200 1,635 894 - 2,529

- 2,500 350 300 - 650

- 1,500 175 300 - 475

70,000 170,000 6,375 6,375 7,013 5,738

- 10,000 300 1,200 - 1,500

- 5,000 150 600 - 750

- 5,000 150 600 - 750

6000 1100 1100

1,241 52.74 52.74

3000 200 200

 50000

Useful Life 5 Years Residual Value 2400

6000

1000 Useful Life 10 Years Residual Value 150

Useful Life 5 Years

3000

50000
Asset Dep till decommissioning Date
Months Date Cost Dep NBV
6 30-6-23 1000 42.5 957.5
0
957.5

RV 150 Depreciable Amt Depreciation per Year

Useful life 10 850 85
Depreciation for asset till date of additional cost
Months Date Cost Dep
12 20 6 23 100000 8500

New Asset Part Depreciation

rv of new part 13500
dep amount 76500
annual dep 7650
 SUMMARY SHEET

NBV

1,200,000
500000
603,143
4,805

2,671

21,900
2,332,519
 Rate for
Depreciation Depreciation Reducing Residual
NBV Location Charge method Balance Useful life Value

1,150,000 Plant Cost of Sale N/A N/A

10% of
- Plant Cost of Sale Straight Line N/A 15 cost

15% of
93,433 Plant Cost of Sale Straight Line N/A 10 cost

15% of
152,750 Plant Cost of Sale Straight Line N/A 10 cost
15% of
- Plant Cost of Sale Straight Line N/A 10 cost

980 Plant Cost of Sale Straight Line N/A 5 Nil

Reducing
2,671 Plant Cost of Sale Balance 25% 3 Nil
40% of
1,850 Plant Cost of Sale Straight Line N/A 5 cost

HR/Accou
1,025 nts Admin Straight Line N/A 5 Nil
15% of
164,263 Plant Cost of Sale Straight Line N/A 10 cost

40% of
8,500 CEO Admin Straight Line N/A 5 cost
40% of
4,250 CFO Admin Straight Line N/A 5 cost
40% of
4,250 GM Admin Straight Line N/A 5 cost
40% of
4,900 SM Admin Straight Line N/A 5 cost
15% of
Plant Admin Straight Line N/A 10 cost
2800 15% of
Plant Cost of Sale Straight Line N/A 5 cost
50000
Plant Cost of Sale N/A N/A

Disposal 25-04-23
Factary and Admin Block Depreciation Exp

Cash 420000
Accumulated Depreciation 100000
Cost 500000
Gain 20000

Extracts
Income Statement
gain 20000

Balance Sheet
cash 420000

Disposal 20-03-23
Plastic Injection Sealing Machine #1

Cash 200000
Accumulated Depreciation 56666.66
Cost 250000
Gain 6666.66

Extracts
Income Statement
Gain 6666.66

Balance Sheet
Cash 200000

Revaluation 24-06-23
 Cost 1000000
Fair Market Value 1150000

Extracts
Balance Sheet
Land 1000000
Add Surplus R 150000
NBV 1150000

Decommisioning Cost
Date 30-06-23
Printing Machinery 1000
Cash 1000 Asset

Decommissionig Cost 600

Intersest Rate 20% Interest Exp
Time 5 Years
ciation per Year PV=241

Extracts
Income Statement
Interest Exp 0

Balance Sheet
Asset 1000
Asset 0
Acc Dep 42.5
NBV 957.5

Impairment 31.03.2023
Plastic moulding Machine # 2
Cost 200,000
NBV 2022 166,000
Annual Depriciation 17,000
Current Depriciation 12750
NBV 2023 153,250

Value in use 140,000

Fair Market Value 130,000 Impairment Expense

Taking Higher of both 140,000

Extracts
 Income Statement
Impairment Expense 13,250

Balance Sheet
Cost 200000
Accumulated Imp -13250
NBV 186750

Capital Expenditure 20-06-23

Plastic Injection moulding machine # 1
42500
Cost 100000 Asset Expense
NBV Expense on machine 25000
91500 Useful life increased by 1year
Total useful life 11years
Residual value 15% dep expense
Depreciatiable Amt 106250
Depreciation Per year 9659.09091

Extracts
Balance Sheet
Cost 100000
CAPEX 25000
Accumulated Dep 51000
NBV 74000

Disposal of a Part and Replaced

Plastic injection Sealing machine # 2

Disposal Date 19-01-23 Months

Engine is Replaced 6
Part Cost 70000
Residual Value Old Part Depreciation
Dep Amt 12750 5
Useful life 10 6
New Part cost 90000
Purchase Date 1 2 2022 After Replacement Depreciation
6
NBV 137,250
Old Part NBV -62988
New Part cost 90000
164,263
Extracts
Income Statement
Dep 6375

Balance Sheet
Asset 150000
Addition 90000
Deletion 70000
TOTAL 170000
preciation Exp 22500
Accumulated Depreciation 22500

Depreciation Exp 14166.66

Accumulated Depreciation 14166.66
 Land 150000
Surplus on Revaluation 150000

241
Provision ftr decommi 241

48.2
Provision for Decommissionig 48.2

pairment Expense 13,250

Accumulated Impairment 13,250
 25000
Cash 25000

8500
accumulated dep 8500

Year End Cost Dep NBV

30-06-23 143,625 6375 137,250

Part Depreciation
30 6 2022 70000 3187.5 66813
19 1 23 66813 3825 62988

er Replacement Depreciation
30 06 2023 164,263 6375 157,888
 Asset
number Asset Description Asset Class
002-20 Factory and admin block Building
003-20 Plastic Injection moulding machine # 1 Machinery
001-21 Plastic Injection moulding machine # 2 Machinery
002-21 Plastic Injection sealing machine # 1 Machinery
003-21 30 chairs, 30 tables, cabinets and filing systems Furniture
004-21 10 computers, 5 scanners, 3 photo copy machines, etc Computer Equipment
005-21 Suzuki swift - LED 1925 Vehicle
001-22 25 chairs, 25 tables, cabinets Furniture
002-22 Plastic Injection sealing machine # 2 Machinery
003-22 Honda civic - LED 1926 Vehicle
004-22 Honda city - LED 1926 Vehicle
005-22 Honda city - LED 1926 Vehicle
 COST
(Rupees in
thousands) DEPRECIATION

Date of
Purchase Opening Additions Deletions Closing 2020 2021
05.12.2019 500,000 - - 500,000 17,500 30,000
10.05.2020 100,000 - - 100,000 4,958 8,500
01.07.2020 200,000 - - 200,000 17,000
01.07.2020 250,000 - - 250,000 21,250
10.11.2020 2,100 - - 2,100 280
03.03.2021 5,200 - - 5,200 433
05.05.2021 2,500 - - 2,500 50
10.12.2021 - 1,500 - 1,500
01.02.2022 - 150,000 - 150,000
03.04.2022 - 10,000 - 10,000
03.04.2022 - 5,000 - 5,000
03.04.2022 - 5,000 - 5,000
 Reducing
Depreciation Residual Balance
Acc Dep 2022 Annual Dep method Useful life Value Dep rate
47,500 30,000 30,000 Straight Line 15 10%
13,458 8,500 8,500 Straight Line 10 15%
17,000 17,000 17,000 Straight Line 10 15%
21,250 21,250 21,250 Straight Line 10 15%
280 420 420 Straight Line 5 0
433 1,192 1,733 Reducing Balance 3 0 25%
50 300 300 Straight Line 5 40%
- 175 300 Straight Line 5 0
- 6,375 12,750 Straight Line 10 15%
- 300 1,200 Straight Line 5 40%
- 150 600 Straight Line 5 40%
- 150 600 Straight Line 5 40%