Page 151 - F1 Integrated Workbook STUDENT 2018

Introduction to Single Entity Accounts including Statement of
Cashflows

The cash flow for non-current assets should be calculated using the following
proforma:

Non-current assets – Carrying amount
Bal b/d (SOFP)
X Disposal (Carrying amount) X
Additions (cash) X Depreciation for the year X
Revaluation gain for the year
X Bal c/d (SOFP) X

––– –––
X X
––– –––

You may have to calculate the proceeds by working backwards from the profit or loss
on disposal as follows:

Non-current assets – Disposal account
Cost X Accumulated depreciation X
Profit on disposal (SPL) X Loss on disposal (SPL) X
Bank (Bal Fig) X
––– –––
X X
––– –––

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