Solution 9.8

 

DR

Equipment Account 

CR

 

 

 

 

1/1/09

Bank a/c

80,000

 

 

 

20/10/09

Bank a/c

100,000

31/12/09

Bal c/d

180,000

 

 

180,000

 

 

180,000

1/1/10

Bal b/d

180,000




15/2/10

Bank

70,000 




20/11/10

Bank

50,000

31/12/10

Bal c/d

300,000

 

 

300,000

 

 

300,000

1/1/11

Bal b/d

300,000

 

 

 

20/3/11

Bank

100,000

31/12/11

Bal c/d

400,000



400,000



400,000

1/1/12

Bal b/d

400,000




15/5/12

Bank

150,000

31/12/12

Bal c/d

550,000



550,000



550,000













 

DR

Provision for Depreciation of Equipment Account 

CR

 

 

 

 

31/12/09

Bal c/d

18,000

31/12/09

P & L a/c

18,000

1/10/04



1/1/10

Bal b/d

18,000

31/12/10

Bal c/d

48,000

31/12/10

P & L a/c

30,000

 

 

48,000

 

 

48,000

 

 

 

1/1/11

Bal b/d

48,000

31/12/11

Bal c/d

88,000

31/12/11

P & L

40,000



88,000



88,000




1/1/12

Bal b/d

88,000

31/12/12

Bal c/d

143,000

31/12/12

P & L

55,000



143,000



143,000













 

 

 

 

DR

Income Statement (P&L Extract)

CR

 

 

 

 

 

2009

Depreciation - equipment

18,000

 

 

 

2010

Depreciation – equipment

30,000

 

 

 

2011

Depreciation – equipment

40,000

 

 

 

2012

Depreciation – equipment

55,000

 

 

 

 


Statement of Financial Position (Extract)

 Non Current Assets

Cost

 

Accumulated

Depreciation

Net Book Value

 

2009

 

 

 

Equipment

180,000

(18,000)

162,000

2010

 

 

 

Equipment

300,000

(48,000)

152,000

 

2011

 

 

 

Equipment

400,000

(88,000)

312,000

2012

 

 

 

Equipment

550,000

(143,000)

407,000