| |
Solution 9.10
|
DR |
Machinery
Account |
CR |
|
|
|
€ |
|
|
€ |
|
5/1/03 |
Bank
a/c |
100,000 |
|
|
|
|
1/9/03 |
Bank
a/c |
220,000 |
31/12/03 |
Bal
c/d |
320,000 |
|
|
|
320,000 |
|
|
320,000 |
|
1/1/04 |
Bal
b/d |
320,000 |
30/7/04 |
Disposal
a/c |
100,000 |
|
1/8/04 |
Bank
a/c |
130,000 |
31/12/04 |
Bal
c/d |
350,000 |
|
|
|
450,000 |
|
|
450,000 |
|
1/1/05 |
Bal
b/d |
350,000 |
|
|
|
|
DR |
Provision
for Depreciation of Machinery Account |
CR |
|
|
|
€ |
|
|
€ |
|
31/12/03 |
Bal
c/d |
52,000 |
31/12/03 |
P
& L a/c |
52,000 |
|
30/7/04 |
Disposal
a/c |
47,500 |
1/1/04 |
Bal
b/d |
52,000 |
|
31/12/04 |
Bal
c/d |
104,250 |
31/12/04 |
P
& L a/c |
99,750 |
|
|
|
151,750 |
|
|
151,750 |
|
|
|
|
1/1/05 |
Bal
b/d |
104,250 |
|
DR |
Disposal
Account |
CR |
|
|
|
€ |
|
|
€ |
|
30/7/04 |
Machinery
a/c |
100,000 |
30/7/04 |
Depreciation
a/c |
47,500 |
|
|
|
|
30/7/04 |
Bank
a/c |
45,000 |
|
|
|
|
30/7/04 |
P
& L a/c |
7,500 |
|
|
|
100,000 |
|
|
100,000 |
|
DR |
Profit
& Loss Account (Extract) |
CR |
|
|
|
€ |
|
|
€ |
|
2003 |
Depreciation
– machinery |
52,000 |
|
|
|
|
2004 |
Disposal
loss |
7,500 |
|
|
|
|
2004 |
Depreciation
– machinery |
99,750 |
|
|
|
Balance
Sheet (Extract)
|
|
Cost
|
Accumulated
Depreciation |
Net Book Value |
|
|
€ |
€ |
€ |
|
2003
Machinery |
320,000 |
(52,000) |
268,000 |
|
2003
Machinery |
350,000 |
(104,250) |
245,750 |
Depreciation
calculations:
|
2003 |
|
2004 |
|
|
Machine 1
100,000 x 30% |
30,000 |
Machine 1
100,000 x 30% x7/12 |
17,500 |
|
Machine 2
220,000 x 30% x4/12 |
22,000 |
Machine 2
220,000 x 30% |
66,000 |
|
|
|
Machine 3
130,000 x 30% x5/12 |
16,250 |
|
|
|
|
|
|