Asset 2 (Plant); Plant was purchased by the business at a cost price of OMR 6,000 and accumulated depreciation up to the end of last year has been recorded as OMR 1,000. It has been decided by the business to sell the plant on 31st July this year for OMR 3,000 and the market value at that time was observed as OMR 3,500. Required: Calculate profit or loss on this machine and also pass journal entries if the annual depreciation is OMR 500 and the year is ending on December 31st every year.

Asset 2 (Plant); Plant was purchased by the business at a cost price of OMR 6,000 and accumulated depreciation up to the end of last year has been recorded as OMR 1,000. It has been decided by the business to sell the plant on 31st July this year for OMR 3,000 and the market value at that time was observed as OMR 3,500. Required: Calculate profit or loss on this machine and also pass journal entries if the annual depreciation is OMR 500 and the year is ending on December 31st every year.

Name: Asset 2 (Plant):Plant was purchased by the business at a cost price o
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Description: Asset 2 (Plant):Plant was purchased by the business at a cost price of OMR 6,000 and accumulated depreciation up to the end of lastyear has been recorded as OMR 1,000. It has been decided by the business to sell the plant on 31st July this year forO

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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