Solution 9.9

 

DR

Equipment Account 

CR

 

 

 

 

1/1/10

Bank a/c

50,000

 

 

 

20/10/10

Bank a/c

90,000

31/12/10

Bal c/d

140,000

 

 

140,000

 

 

140,000

1/1/11

Bal b/d

140,000




15/2/11

Bank

80,000 




20/11/11

Bank

60,000

31/12/11

Bal c/d

280,000

 

 

280,000

 

 

280,000

1/1/12

Bal b/d

280,000

 

Disposal

30,000 

20/3/12

Bank

120,000

31/12/11

Bal c/d

370,000



400,000



400,000

1/1/13

Bal b/d

370,000
















 

DR

Provision for Depreciation of Equipment Account 

CR

 

 

 

 

31/12/10

Bal c/d

14,000

31/12/10

P & L a/c

14,000




1/1/11

Bal b/d

14,000

31/12/11

Bal c/d

42,000

31/12/11

P & L a/c

28,000

 

 

42,000

 

 

42,000

 

Disposal 

6,000 

1/1/11

Bal b/d

42,000

31/12/11

Bal c/d

73,000

31/12/11

P & L

37,000



79,000



79,000




1/1/12

Bal b/d

73,000













 

 

DR

Disposal Account 

CR

 

 

 

 

1/10/04

Equipment a/c

30,000

1/10/04

Depreciation a/c

6,000

 

 

 

1/10/04

Bank a/c

20,000

 

 

 

1/10/04

P & L a/c

4,000

 

 

30,000

 

 

30,000


 

 

DR

Income Statement (P&L Extract)

CR

 

 

 

 

 

2010

Depreciation - equipment

14,000

 

 

 

2011

Depreciation – equipment

28,000

 

 

 

2012

Depreciation – equipment

37,000

 

 

 

2012

Loss on disposal

4,000

 

 

 

 


Statement of Financial Position (Extract)

 Non Current Assets

Cost

 

Accumulated

Depreciation

Net Book Value

 

2010

 

 

 

Equipment

140,000

(14,000)

126,000

2011

 

 

 

Equipment

280,000

(42,000)

238,000

 

2012

 

 

 

Equipment

370,000

(73,000)

297,000