WUCB104: Accounting In Organizations

Spring 2020- Diploma of Business

Assignment 3

Name.

Institutional Affiliation.

Date.
 QUESTION ONE.

Part A

Date Account Ref Debit Credit

2019/2020 Account Receivables $ 2,036

Cash Account $ 2,306

2019/2020 Additional Interest Owing $ 12,150

Bank Overdraft $ 12,150

2019/2020 Transfer to General $ 20,000

Reserve
Retained Earnings $ 20,000

2019/2020 Retained Earnings $25,000

Cash Account $ 25,000

2019/2020 Capital $ 20,000

Revaluation surplus $ 20,000

End year Depreciation on buildings W1 $ 41,400

Accumulated depreciation $ 41,400

Depreciation on furniture W2 $ 19,200

Accumulated Deprecation $ 19,200

June 30 Depreciation on vehicles W3 $ 15,200

Accumulated depreciation $ 15,200

End Year Interest on investment $ 12,000

Cash Account $ 12,000

End Year Prepaid Insurance $ 3,000

Cash $ 3,000

End Year Bad Debts Expense W4 $ 2,949.50

 Allowance for bad debts $ 2,949.50

W1: Depreciation on buildings

¿ 5 %∗828,000

¿ $ 41,400

W2. Depreciation n furniture

¿=10 %∗192,000

¿ $ 19,200

W3. Depreciation on Delivery vehicles

200,000
¿
40,000

¿5

84,000−8,000
¿
5

¿ 15,200

W4: Bad debts estimates

¿ 0.5 %∗589,900

¿ $ 2,949.50
Part B