Non-Current Assets Study Essay
ACCOUNTING ASSIGNEMNT
-NON-CURRENT ASSETS
TASK ONE
Select three non-current assets for purchase and then design and prepare example property, plant and equipment registers which show all relevant details over the projected life of the asset. Each asset must have two PPE registers prepared- one using straight line method of depreciation and the other using reducing balance method. This is done to assit with decision making about the best depreciation method to use. The purchase date of all three assets must be 1 September 2012.
The assets that you are asked to research are: * Delivery van(commercial vehicle) used to delivery white goods * Commercial quality coffee machine for the customer coffee shop * Smartphone for salespeople
Write a report explaining and justifying your proposed accounting treatment of the assets including-the costs of acquisition of the asset chosen, running/maintenance costs. The depreciation method chosen, useful life considerations, residual value and disposal method. Use the PPE registers you’ve prepared to support your arguments.
Any features of the asset you may wish to list should be in an appendix and as such does not form part of the word count. The focus of the report is on the accounting treatment of the asset.
DELIVERY VAN: ASSET REGISTER | Item: | Delivery van | Method of Depreciation | Straight line | Original Cost: | 39091 | No: | 1 | Rate: | | GST: | 3909 | Supplier: | Mercedes-Benz | Estimated Useful Life: | 5 years | Annual Depreciation | | Location: | | Estimated Residual Value: | 19591 | | 4400 | Date | Details | Cost | Depreciation | AccumDepn | Net Value (Reduced bal) | Other Costs | | | | | | | Date | Details | Amt | 01/09/2012 | Purchase | 39091 | 0 | 0 | | 01/01/2012 | Lift | 1818 | | Purchase-lift | 2000 | 0 | 0 | | | GST-lift | 182 | | Purchase-alarm system | 500 | 0 | 0 | 41591 | | Alarm system | 455 | 01/07/2013 | Depreciation(10) | 41591 | 3667 |
-NON-CURRENT ASSETS
TASK ONE
Select three non-current assets for purchase and then design and prepare example property, plant and equipment registers which show all relevant details over the projected life of the asset. Each asset must have two PPE registers prepared- one using straight line method of depreciation and the other using reducing balance method. This is done to assit with decision making about the best depreciation method to use. The purchase date of all three assets must be 1 September 2012.
The assets that you are asked to research are: * Delivery van(commercial vehicle) used to delivery white goods * Commercial quality coffee machine for the customer coffee shop * Smartphone for salespeople
Write a report explaining and justifying your proposed accounting treatment of the assets including-the costs of acquisition of the asset chosen, running/maintenance costs. The depreciation method chosen, useful life considerations, residual value and disposal method. Use the PPE registers you’ve prepared to support your arguments.
Any features of the asset you may wish to list should be in an appendix and as such does not form part of the word count. The focus of the report is on the accounting treatment of the asset.
DELIVERY VAN: ASSET REGISTER | Item: | Delivery van | Method of Depreciation | Straight line | Original Cost: | 39091 | No: | 1 | Rate: | | GST: | 3909 | Supplier: | Mercedes-Benz | Estimated Useful Life: | 5 years | Annual Depreciation | | Location: | | Estimated Residual Value: | 19591 | | 4400 | Date | Details | Cost | Depreciation | AccumDepn | Net Value (Reduced bal) | Other Costs | | | | | | | Date | Details | Amt | 01/09/2012 | Purchase | 39091 | 0 | 0 | | 01/01/2012 | Lift | 1818 | | Purchase-lift | 2000 | 0 | 0 | | | GST-lift | 182 | | Purchase-alarm system | 500 | 0 | 0 | 41591 | | Alarm system | 455 | 01/07/2013 | Depreciation(10) | 41591 | 3667 |