On 1st July 2017, Virginia Airlines acquired a new aircraft that can be used for long flights. The aircraft costs Rs205 million. The company's engineer determined that the aircraft could be broken into the following components namely: Fuselage, Engine and undercarriage. The following details relate to the different components: Total cost (%) Scrap value Useful life Fuselage 60 Rs3m 10 years Engine 30 10,000 flying hours 500 landings Undercarriage 10 During the first year the aircraft had 300 flights and was in operation for 600 hours. Prepare journal entries necessary to account for the depreciation of the aircraft for the year ending 30 June 2018.

On 1st July 2017, Virginia Airlines acquired a new aircraft that can be used for long flights. The aircraft costs Rs205 million. The company's engineer determined that the aircraft could be broken into the following components namely: Fuselage, Engine and undercarriage. The following details relate to the different components: Total cost (%) Scrap value Useful life Fuselage 60 Rs3m 10 years Engine 30 10,000 flying hours 500 landings Undercarriage 10 During the first year the aircraft had 300 flights and was in operation for 600 hours. Prepare journal entries necessary to account for the depreciation of the aircraft for the year ending 30 June 2018.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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