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 | 800 |
| Additional memory | 40 |
| Deivery | 80 |
| Installation | 50 |
| One year maintenance | 90 |
| Total before tax | 1060 |
| Sales tax 17.5% | 185.5 |
| Total after tax | 1245.5 |
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 $970.
To do the same topic again in ACCA F3 Past Exam Non-current Account