FINANCE AND ACCOUNTING.

Running head: FINANCE AND ACCOUNTING
Finance and Accounting
Name of the Student:
Name of the University:
Author’s Note

1
FINANCE AND ACCOUNTING
Table of Contents
Answer to Question 1......................................................................................................................1
Answer to Question 4......................................................................................................................2
Reference.........................................................................................................................................4

2
FINANCE AND ACCOUNTING
Answer to Question 1
Asset
Appraisa
l % of Market Value
Building 850000 55%
Warehouse 480000 31%
Drilling
Equipment 210000 14%
Market Value 1540000
Statement Showing computation of Individual Costs of Assets
Asset % of Market Value Total Purchase Price
Asset
cost
Building 55% 1300000 717532
Warehouse 31% 1300000 405195
Drilling Equipment 14% 1300000 177273
Journal
Building A/c ........................... Dr 717532
Warehouse A/c.......................Dr 405195
Drilling Equipment A/c..........Dr 177273
To Cash A/c 1300000
Assets Purchased in Lumpsum
The treatment for fixed assets which are purchased and maintained by a business are done
considering AASB 116.
Carrying Amount and Depreciation Charges