Solution 9.9
|
DR |
Vehicles Account |
CR |
|||
|
|
|
€ |
|
|
€ |
|
1/1/03 |
Bal b/d |
256,000 |
30/6/03 |
Disposal a/c |
40,000 |
|
1/4/03 |
Bank a/c |
56,000 |
|
|
|
|
1/7/03 |
Bank a/c |
25,000 |
31/12/03 |
Bal c/d |
297,000 |
|
|
|
337,000 |
|
|
337,000 |
|
1/1/04 |
Bal b/d |
297,000 |
|
|
|
|
DR |
Provision for Depreciation of Vehicles Account |
CR |
|||
|
|
|
€ |
|
|
€ |
|
30/6/03 |
|
31,360 |
1/1/03 |
Bal b/d |
135,000 |
|
31/12/03 |
Bal c/d |
180,984 |
31/12/03 |
|
77,344 |
|
|
|
212,344 |
|
|
212,344 |
|
|
|
|
1/1/04 |
Bal b/d |
180,984 |
|
€ 40,000 (16,000) 40,000x40% 24,000 (9,600) 24,000x40% 14,400 (5,760) 14,400x40% 8,640 Depreciation to date is 16,000+9,600+5,760 =31,360 |
|
Cost €297,000 – net depreciation €103,640 (i.e.€135,000 - €31,360) = €193,360 x 40% = €77,344
|
|
DR |
Disposal Account |
CR |
|||
|
|
|
€ |
|
|
€ |
|
30/6/04 |
Vehicles a/c |
40,000 |
30/6/03 |
Depreciation a/c |
31,360 |
|
|
|
|
30/6/03 |
Bank a/c |
8,500 |
|
|
|
|
30/6/03 |
P & L a/c |
140 |
|
|
|
40,000 |
|
|
40,000 |
|
DR |
Profit & Loss Account 2003 (Extract) |
CR |
|
|||
|
|
|
€ |
|
|
€ |
|
|
|
Disposal loss |
140 |
|
|
|
|
|
|
Depreciation – vehicles |
77,344 |
|
|
|
|
Balance Sheet 2003 (Extract)
|
|
Cost
|
Accumulated Depreciation |
Net Book Value |
|
|
€ |
€ |
€ |
|
Vehicles |
297,000 |
(180,984) |
116,016 |