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  • Accounting

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    clementhii264
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    The document shows accounting entries related to machinery over multiple years from 20_5 to 20_9. It records the initial cost of the machinery in 20_5, annual depreciation expense using the straight line method, accumulated depreciation balances each year, and the disposal of the machinery in 20_9. On disposal, the remaining net book value is removed from the accounts and any gain or loss on disposal is recorded.

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    The document shows accounting entries related to machinery over multiple years from 20_5 to 20_9. It records the initial cost of the machinery in 20_5, annual depreciation expense using the straight line method, accumulated depreciation balances each year, and the disposal of the machinery in 20_9. On disposal, the remaining net book value is removed from the accounts and any gain or loss on disposal is recorded.

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    1 views2 pages

    Accounting

    Uploaded by

    clementhii264
    The document shows accounting entries related to machinery over multiple years from 20_5 to 20_9. It records the initial cost of the machinery in 20_5, annual depreciation expense using the straight line method, accumulated depreciation balances each year, and the disposal of the machinery in 20_9. On disposal, the remaining net book value is removed from the accounts and any gain or loss on disposal is recorded.

    Copyright:

    © All Rights Reserved
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    of 2

    Q.

    Dr Machinery cost a/c Cr


    20_5 straigh line method= (23,000
    1-Jan bal b/d 23,000 31-Dec bal c/d 23,000

    1-Jan bal b/d 23,000 10-Jan Disposal a/ 23,000

    Dr
    20_9
    10-Jan Machinery cost
    Dr Machinery Acc.Dpn a/c Cr 10-Jan Gain
    20_5
    31-Dec bal c/d 5,000 31-Dec Dpn.exp 5,000

    20_6
    31-Dec bal c/d 10,000 1-Jan Bal b/d 5,000
    31-Dec Dpn.exp 5,000
    10,000 10,000

    20_7
    31-Dec bal c/d 15,000 1-Jan bal b/d 10,000 Extract SOPL at the end of 31 December
    31-Dec Dpn.exp 5,000
    15,000 15,000 Dpn exp
    Gain on disposal
    20_8
    31-Dec bal c/d 20,000 1-Jan bal b/d 15,000 Extract SOFP at the end of 31 December
    31-Dec Dpn.exp 5,000 Non-current asset
    20,000 20,000 Machinery
    Cost
    20_9 Less: Acc.dpn.exp
    10-Jan Disposal a/ 20,000 1-Jan bal b/d 20,000 NBV
    gh line method= (23,000-3,000)/4

    Disposal a/c Cr

    23,000 10-Jan Machinery 20,000


    2000 10-Jan cash 5,000
    25,000 25,000

    31 December 20_5-20_8 20_9

    5,000
    2,000

    31 December 20_5 20_6 20_7 20_8 20_9

    23,000 23,000 23,000 23,000


    -5,000 -10,000 -15,000 -20,000
    18,000 13,000 8,000 3,000

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