FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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23. Asset sold on credit (including GST) and purchaser pays deposit.
On 30 November 2017 a finishing machine was sold. Its capital cost was $25,000 and accumulated
depreciation was $13,000 at date of sale. The machine had been depreciated since purchase at
22.5% pa using the straight line method. The machine was sold on credit to Jake Strong for
$14,300 (including GST) with the purchaser paying a $1,000 deposit. Balance date is 30 June.
Required: (a) Record General Journal entries to account for the sale of the finishing machine
and post to the relevant ledger accounts.
(b) Transfer the profit or loss on disposal to the Profit and Loss account at 30 June.
General Journal
Date
Details
Debit
GJ1
Credit
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Transcribed Image Text:23. Asset sold on credit (including GST) and purchaser pays deposit. On 30 November 2017 a finishing machine was sold. Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale. The machine had been depreciated since purchase at 22.5% pa using the straight line method. The machine was sold on credit to Jake Strong for $14,300 (including GST) with the purchaser paying a $1,000 deposit. Balance date is 30 June. Required: (a) Record General Journal entries to account for the sale of the finishing machine and post to the relevant ledger accounts. (b) Transfer the profit or loss on disposal to the Profit and Loss account at 30 June. General Journal Date Details Debit GJ1 Credit
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