Part A

Bruno Traders
General Journal for the years ended 31 December 20.3 and 31 December 20.4
Date Account Name Debit N$ Credit N$

1 Jan 20.4 Revaluation surplus (SCE) 50,000

Land (SFP) 50,000
Recognising a revaluation deficit (expense)

Furniture
Part B
Cost (22800*100/114) 20,000.00
Accumulated dep (30.12.20.3) (12,000.00)
Carrying amount at 31 Dec 20.3 8,000.00
Dep 20.4 (20000*10%*3/12) (500.00)
Carrying amount at 31 Mar 20.4 7,500.00

Proceeds on disposal (6840*100/114) 6,000.00

Less carrying amont at 31 Mar 20.4 (7,500.00)
Loss on disposal (1,500.00)

OR using asset disposal account

Asset disposal account

Furniture 20,000.00 Accumulated dep: furniture 12,500.00 (see workings)
Proceeds on disposal 6,000.00
Loss on dispossal (balancing
figure) 1,500.00
20,000.00 20,000.00

Journals
Dr Bank (proceeds) 6,000.00
Dr Accumulated dep furniture 12,500.00
Dr Loss on disposal of furniture 1,500.00
Cr Furniture 20,000.00
 Bruno Traders
Notes to the financial statements
for the year ended 31 December 20.4

Property, Plant and equipment reconciliation note

Land Buildings Furniture Vehicles Total
N$ N$ N$ N$
Carrying amount at 1 Jan 20.4 400,000 192,000 60,000 170,000 822,000
Gross carrying amount at beginning of year 400,000 200,000 100,000 250,000 950,000
Accumulated dep - (8,000) (40,000) (80,000) (128,000)

depreciation (4,000) (8,500) (36,000) (48,500)

Revaluation expense (50,000) (50,000)
additions 40,000 40,000
Disposals (7,500) (7,500)
Cost (20,000) (20,000)
Accumulated depreciation 12,500 12,500
-
Carrying amount at 31 Dec 20.4 350,000 188,000 44,000 174,000 756,000
Gross carrying amount at end of year 350,000 200,000 80,000 290,000 920,000
Accumulated dep - (12,000) (36,000) (116,000) (164,000)
Workings
Depreciation:
Buildings 200000*0.02 4,000

Furniture
Cost per TB 100,000
less disposed furniture (22800*100/114) (20,000)
Cost of furniture not disposed 80,000

Depreciation on furniture not disposed

(80000*10%) 8,000
Depreciation on disposed furniture
(20000*10%)*3/12 500
Total depreciation furniture 8,500

Vehicles
Balance per TB 250,000
Acc dep (80,000)
Carrying amount 170,000

Depreciation on vehicles (170000*0.2) 34,000

New Vehicle dep (40000*0.2*3/12) 2,000

Total depreciation vehicles 36,000

 Bruno Traders
Statement of financial position
As at 31 December 20.4
N$
Assets
Non-current assets
Property, plant and equipment 756,000