EXERCISE Nº 8

1. Sale a machine in cash for € 800 which its purchase price was € 3,000 and its
depreciation was € 1,800.

2. The account “Elementos de transportes” has a balance of €10,000. This element is

sold in cash for €1,500. Its depreciation is €3,800

3. Do the entry and calculate the net book value of a car if it was purchased 4 years
ago. Its lifetime was estimated in 10 years. The sale price is €3,100

4. A company sells furniture in cash for €850. They were bought 2 years ago for
€1,000. The furniture has been amortized each year using the proportional natural
number increasing method, with a residual value of €100. The sale price is €850

5. A company buys a piece of land for € 20.000 €. It will be paid 12 months later.

6. The Company pays € 150,000 plus VAT, to exploit of a mine.

7. A Company purchases an operating business for 120.000 € in cash whose assets are
as follows:
Terrenos y bienes naturales ........................ 20.000 €
Construcciones ............................................ 80.000 €
Mobiliario ...................................................... 5.000 €

8. We want to rent a running store, so we pay by cheque € 8,000 plus VAT to the
owner.

9. A Company buys a computer and an accounting software for €5,000 and €1,500
respectively. The company pays e1,000 by bank transfer and the rest will be paid 3
months later.

10. Do the amortization entry if the constant rate is 15 % for the software and 25 % for
the computer.

11. Three years later the software is sold in cash for € 900.

12. A company wants to purchase some tools and pays € 3,000 in advance.

13. When the company gets the tools pays € 1,200 signing a draft with an expiry date
of 90 days.

14. The company VCB has a cash surplus and decides to buy a building for €200,000.
This operation is a long term. (The company considers the 20% as the value of the
piece of land).

15. Three months later, the company decided to use this building for administration
offices