The following balances were extracted from the Fixed Assets (PPE) Register of DICCEE

Ventures on January 1, 2012:

=N=’000
Land & Buildings 50,900
Plant, Machinery and Equipment 34,460
Furniture and Fittings 3,690

Accumulated Depreciation:
Land & Buildings 8,110
Plant, Machinery & Equipment 8,640
Furniture and fittings 584

During the year, Plant costing N10 million was acquired. Legal charges, installation costs and
handling in respect of this Plant amounted to N1.7 million. Furniture and Fittings acquired
during the year amounted to N1.86 million. An item of Equipment which was bought in 2008
was sold for N1.1 million during the year.

Also disposed within the year was one of the Warehouse buildings acquired in 2007 was sold for
N5 million.

The Entity’s depreciation policy is as follows:

a. A full year’s depreciation is charged in the year of acquisition of a non-current asset
but none in the year of sale.
b. The assets are depreciated on Straight line basis at the following rates -

Land & Buildings 2% p.a

Plant, Machinery & Equipment 10% p.a.
Furniture and fittings 12.5% p.a

Required:
Prepare the Fixed Assets schedule (PPE) /Depreciation Schedule for non current Asset

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Suggested Solution

DICCEE VENTURES
YEAR ENDED 31 DECEMBER 2012

Property, Plant & Equipment/Depreciation Schedule

Land& Plant, Mach. & Furn. &
Buildings Equipment Fittings Total
=N=’000 =N=’000 =N=’000 =N=’000
COST/VALUATION:
As at Jan. 1, 2012 50,900 34,460 3,690 89,050
Additions - 11,700 1,860 13,560
Disposals (5,000) (1,100) - (6,100)
As at 31 December, 2012 45, 900 45,060 5,550 96,510

DEPRECIATION:
As at Jan.1, 2012 8,110 8,640 584 17,334
Charge for year 918 4,506 694 6,118
Disposals (500) (440) - (940)
As at 31 December, 2012 8,528 12,706 1,278 22,512

Carrying Amount(NBV) 31/12. 37,372 32,354 4,272 73,998

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