AAT L3 FAPS – Revision Questions 1

FAPS Revision Questions 1

Non-Current Asset Register.

Task 1
The following purchase invoice has been received by the company. The company is
registered for VAT.

To: xxxxxx From: xxxxxx Date: 24 June 20X9

Address: xxxxxxxxx VAT No.: xxxxxxxxxxxx Invoice number: 122222

Description Quantity £
Laser printer and copier 1 2,000.00
Delivery and installation 1 40.00
Printer toners cartridges 4 120.00
VAT @ 20% 432.00
Total due 2,592.00
Settlement terms: 30 days

You have been provided with the following information and the details of the sale of a
vehicle.

Registration number: BF 08 TLK

Date of sale 17 June 20X9

Selling price (excluding VAT) £5,000

The company has a policy to capitalise expenditure over £500.

Vehicles are depreciated at 20% on a reducing balance basis.

Computer equipment is depreciated at 25% on a straight-line basis. It is assumed

there is no residual value.

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 AAT L3 FAPS – Revision Questions 1

Non-current assets are depreciated in the year of acquisition but not in the year of
disposal.

a) For the year ended the 30 June 20X9, record the following in the extract from the
non-current assets register below:

• Any acquisitions of non-current assets

• Any disposals of non-current assets
• Depreciation

Description Acquisition Cost Depreciation Carrying Funding Disposal Date of

Date Charge Amount Method Proceeds Disposal
£ £ £ £

Computer
equipment

Server 30/12/X6 3,000.00 Cash

Year ended
750.00 2,250.00
30/06/X7

Year ended
750.00 1,500.00
30/06/X8

Vehicles

BF 08 TLK 01/07/X6 15,000.00 Cash

Year ended
3,000.00 12,000.00
30/06/X7

Year ended
2,400.00 9,600.00
30/06/X8

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 AAT L3 FAPS – Revision Questions 1

Task 2
The following purchase invoice has been received by the company. The company is
registered for VAT.

To: xxxxxx From: xxxxxx Date: 24 March 20X5

Address: xxxxxxxxx VAT No.: xxxxxxxxxxxx Invoice number: 233333

Description Quantity £

Milling Machine 1 800.00

Installation 1 320.00

Delivery 1 50.00

VAT @ 20% 234.00

Total due 1,404.00

Settlement terms: 30 days

You have been provided with the following information and the details of the sale of a
vehicle.

Registration number: FL 08 AAT

Date of sale 17 March 20X5

Selling price (excluding VAT) £6,600

The company has a policy to capitalise expenditure over £500.

Vehicles are depreciated at 20% on a reducing balance basis.

Plant and machinery equipment are depreciated at 15% on a straight-line basis. It is

assumed there is no residual value.

Non-current assets are depreciated in the year of acquisition but not in the year of
disposal.

a) For the year ended the 31 March 20X5, record the following in the extract from the
non-current assets register below:

• Any acquisitions of non-current assets

• Any disposals of non-current assets
• Depreciation

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 AAT L3 FAPS – Revision Questions 1

Description Acquisition Cost Depreciation Carrying Funding Disposal Date of

Date Charge Amount Method Proceeds Disposal
£ £ £ £

Plant and
machinery

Sanding
30/12/X2 8,000.00 Cash
machine

Year ended
1,200.00 6,800.00
31/03/X3

Year ended
1,200.00 5,600.00
31/03/X4

Vehicles

FL 08 ATT 17/03/X2 12,000.00 Cash

Year ended
2,400.00 9,600.00
31/03/X3

Year ended
1,920.00 7,680.00
31/03/X4

BL 09 DEL 21/08/X3 8,200.00 Part exchange

Year ended
1,640.00 6,560.00
31/03/X4

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 AAT L3 FAPS – Revision Questions 1

b) The office needed major work on its electrical wiring to accommodate new computer
equipment. After the work was completed the office was given a fresh coat of paint.

The costs were:

Rewire costs: £500

Materials required to rewire the room: £150

Paint: £50

What is the additional cost to be recorded as capital expenditure?

£ ______

Task 3
The following purchase invoice has been received by the company. The company is
registered for VAT.

To: xxxxxx From: xxxxxx Date: 1 April 20X7

Address: xxxxxxxxx VAT No.: xxxxxxxxxxxx Invoice number: 3444444

Description Quantity £

Industrial gas clay oven 1 2,000.00

Installation of oven 1 200.00

Shelving unit 1 300.00

VAT @ 20% 500.00

Total due 3,000.00

Settlement terms: 30 days

You have been provided with the following information and the details of the sale of
some IT equipment.

Item number: HT Desktop Computer

Date of sale 31 December 20X7

Selling price (excluding VAT) £1,800

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 AAT L3 FAPS – Revision Questions 1

The company has a policy to capitalise expenditure over £500.

Machinery and equipment are depreciated at 20% on a reducing balance basis.

IT equipment is depreciated at 10% on a straight-line basis. It is assumed there is no

residual value.

Depreciation is calculated on an annual basis and charged in equal instalments for

each full month an asset is owed.

a) For the year ended the 31 March 20X8, record the following in the extract from the
non-current assets register below:

• Any acquisitions of non-current assets

• Any disposals of non-current assets
• Depreciation

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 AAT L3 FAPS – Revision Questions 1

Description Acquisition Cost Depreciation Carrying Funding Disposal Date of

Date Charge Amount Method Proceeds Disposal
£ £ £ £

Equipment/
Machinery

Glazing
01/04/X5 2,000.00 Cash
machine

Year ended
400.00 1,600.00
31/03/X6

Year ended
320.00 1,280.00
31/03/X7

HT Desktop Part
01/01/X6 2,400.00
Computer exchange

Year ended
60.00 2,340.00
31/03/X6

Year ended
240.00 2,100.00
31/03/X7

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