Several financial accounting questions

[Notorious Frank White]

i have a few questions to ask concerning financial accounting,i am a bit confused.

1. Can a premises being used for business be depreciated the same way as ,say, a van?

2. If a farmer has £20,000 and with the money is on his way to buy a tractor for £20,000. By the time he gets there the tractor is on sale for £10,000. So the farmer buys the tractor for £10,000. On his profit and loss account, does he record the value of the tractor for £20,000 or £10,000?

3. A debtor owe's you £100. That person has not paid you for nearly a year. He has also lost contact with you and moved away. You hope he will pay you back. Should this person write off the debt?

4. If goodwill has not been purchased, is it added as a asset? For example, a salesman smiles at a customer or there is free parking spaces infront of a shop.

please take some time to answer these questions,



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[accountant1]

Question 1
Ans, The land and buildings owned by someone, especially by a company or organization
is called Premises . Depritcation will chargerd all tangible Fixed Assets for example Buildings ,van and machinery etc. but Land is the only tangible fixed asset which cant be depricaite , so in the business premseis u can depricate Buildings but u cant depriciate the land own by business

BELIEVING IN YOURSELF IS THE FIRST STEP TO SUCCESS.
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[accountant1]

Question 4
GOOD WILL is a NON Tangible Asset yes so it is also a part of assets of business


BELIEVING IN YOURSELF IS THE FIRST STEP TO SUCCESS.
never tell Allah how big ur worris are?...........just tell ur worries how big ALLAH is .....
[email protected]

[nomanbhatti]

answer 2the value of tractir is $10,000 because whta cash is paid to acquire the asset is teh value at which asset ias rcorded.
answer 3provide provision against hat debtor in the current year and write off next year of not recovered.

nomi