Question

QUESTION 7

On the statement of financial position, the cumulative amount of depreciation expense recognised to date on a Non-Current Asset is called?

1. Accumulated amortisation

2. Depreciation Expense

3. Accumulated Depreciation

4. Amortisation expense

Question 8)

Wong and White are partners. They have agreed to share profits based on a formula where the first $100 000 is based on service and Wong is to receive $70 000 and White $30 000. The next $100 000 is based on capital contributed where Wong invested $350 000 and White $150 000. Any remaining profits are shared equally.

       If profits before distributions were $450 000 how much will White receive?

1. $200 000

2. $185 000

3. $160 000

4. $120 000

Answer 1

Ans 7(C )	Accumulated Depreciation: Accumulated amount of depreciation is a cumulative amount of depreciation expense recognized to a date on a non current assets.
Ans 8(b)	White receive $185000
			Wong	White
		Profit share on the basis of service	$                                              70,000.00	$                                             30,000.00
	*	Profit share in the basis of investment	$                                              70,000.00	$                                             30,000.00
	**	Profit shares equally($450000-$200000)	$                                           1,25,000.00	$                                         1,25,000.00
		Total amount receive	$                                           2,65,000.00	$                                         1,85,000.00
			Wong	White
	*		($100000/$500000)*$350000	($100000/$500000)*$150000
	**		($450000-$100000-$100000)*(1/2)	($450000-$100000-$100000)*(1/2)