Name: Shehryar Zehri

Reg no: 1811188

Years Dep Exp Acc Dep

1 72000 72000
2 72000 144000
3 72000 216000
4 72000 288000
5 72000 360000

Years Calculation Dep Exp

1 40000x0.4 16000
2 240000x0.4 96000
3 144000x0.4 57600
4 86400x0.4 34560
5 11840

Years Cost Rate

1 40000 0.2
2 40000 0.32
3 40000 0.192
4 40000 0.1152
5 40000 0.1152
0.0516
Question No: 1
Straight Line Method
Book Value
328000
256000
184000
112000
40000

Double Diclinig Method

Acc Dep Book Value

16000 240000
256000 144000
313600 86400
348160 51840
360000 40000

MACRS
Dep Acc Acc Dep Book Value
80000 80000 480000
128000 208000 192000
76800 284800 115200
46080 330850 69120
46080 376960 23040
23040 400000 0
Question No: 2 ( Part a)

Date Description Debit Credit

31/12/2014 Uncollectable Acc Expense 70000
Allowance for doubtful A/c 70000

19/2/2015 Allowance for doubtful A/c 10000

A/c Receivable (Barco) 10000

19/2/2015 Allowance for doubtful A/c 5000

A/c Receivable (James) 5000

22/4/2015 Account Receivable (James) 5000

Allowance for doubtful A/c 5000
Cash 5000
Account Receivable 5000

Uncollectable Amount Expense 69000

Allowance for doubtful A/c 69000

Before Write off

750000
70000
680000
 Allowance for Doubtful A/c

Dr Cr
1000 70000
5000 5000
60000
750000
75000-15000 690000

Question No: 2 ( Part b)

NRV
A/c R/A
Less Allowance for doubtful Account

Before Write off After Write off

740000
60000
680000
Question No: 3
S.No
1/ Cash 59000
Acc dep 54000

2/ Cash 50000
Acc Dep 36000
Loss 14000
Equipment 100000

3/ Cash 30000
Acc dep 54000
Loss 16000
Equipment 100000

4/ Cash 42000
Acc dep 18000
Loss 40000
Equipment 100000
Question No: 4
Notes Payble

Description Dr Credit
Cash 1000000
Notes Payable 1000000

Interest Expense 33333

Interest Payable 33333

Notes Payable 1000000

Interest Payable 33333
Cash 1033333
Question No: 5
Cash Paid 100000
Net Cost of Property 5900
Attorney's Fees for Working 1100
Real estate before fee 4000
Architect Fee 7800
Parking 14000
132800