Question B1 An extract from the Statement of Financial Position for Hannah, a sole trader at...

 

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Question B1 An extract from the Statement of Financial Position for Hannah, a sole trader at 31st December 2020 showed the following for Non Current Assets Cost Non Current Assets £ 750,000 Accumulated Depreciation £ Net Book Value £ 450,000 During the financial year ended 31st December 2021 the following transactions took place. 300,000 [1] The sale of a Non Current Asset on 30th June 2021 for £10,000 which cost £120,000 when purchased on January 1st 2017 [2] There was a purchase of a Non Current Asset on 1st May 2021 costing £90,000 Hannah's depreciation policy is to provide for depreciation on all Non Current Assets at a rate of 20% per annum using the straight line method (a) Required: Prepare an extract from the Statement of Financial Position at 31st December 2021 showing the Non Current Assets section only [9] Question B1 An extract from the Statement of Financial Position for Hannah, a sole trader at 31st December 2020 showed the following for Non Current Assets Cost Non Current Assets £ 750,000 Accumulated Depreciation £ Net Book Value £ 450,000 During the financial year ended 31st December 2021 the following transactions took place. 300,000 [1] The sale of a Non Current Asset on 30th June 2021 for £10,000 which cost £120,000 when purchased on January 1st 2017 [2] There was a purchase of a Non Current Asset on 1st May 2021 costing £90,000 Hannah's depreciation policy is to provide for depreciation on all Non Current Assets at a rate of 20% per annum using the straight line method (a) Required: Prepare an extract from the Statement of Financial Position at 31st December 2021 showing the Non Current Assets section only [9]

Answer rating: 100% (QA)

Cost Accumulated Net Book Value Depreciation NonCurrent Assets 750000 630000 120000 Explanat... View the full answer