ACCA F3 Past Exam Non-Current Account
Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the computer showed the following costs related to the purchase:
| Computer | 400 |
| Additional memory | 10 |
| Deivery | 50 |
| Installation | 30 |
| One year maintenance | 20 |
| Total before tax | 510 |
| Sales tax 17.5% | 89.25 |
| Total after tax | 599.25 |
How much should Gareth capitalise as a non-current asset in relation to the purchase?
Answer: Maintenance should not be taken into consideration. The answer is $490.
To do the same topic again in ACCA F3 Past Exam Non-current Account