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Required: Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal

Required: Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal

FINANCIAL ACCOUNTING
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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Q#5 following transactions: During the current year, Crown Developers disposed of plant assets in the Office equipment costing Rs. 14,000 was given to a scrap dealer. No proceeds were received for the scrap dealer. At the date of disposal, accumulated depreciation on the office equipment amounted to Rs. 11,900. Crown sold land and a building to Villa Associates for Rs. 630,000 receiving Rs. 200,000 in cash and a 5-year, 10% note receivable for Rs. 430,000. Crown's accounting records showed the following amounts: Apr. 1 Land Rs. 120,000 Building Rs. 350,000 Accumulated Depreciation: Building (as of April 1) Rs. 115,000 Aug 15 Crown trade-in an old truck for a new one the old truck had cost Rs. 11,000 and accumulated depreciation amounted to Rs. 7,000. The list price of the new truck was Rs. 17,000; Crown received a Rs. 5,000 trade-in allowance for the old truck and paid the Rs. 12,000 balance in cash. (Trucks are included in the Vehicles account) Required: Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal
Transcribed Image Text:Q#5 following transactions: During the current year, Crown Developers disposed of plant assets in the Office equipment costing Rs. 14,000 was given to a scrap dealer. No proceeds were received for the scrap dealer. At the date of disposal, accumulated depreciation on the office equipment amounted to Rs. 11,900. Crown sold land and a building to Villa Associates for Rs. 630,000 receiving Rs. 200,000 in cash and a 5-year, 10% note receivable for Rs. 430,000. Crown's accounting records showed the following amounts: Apr. 1 Land Rs. 120,000 Building Rs. 350,000 Accumulated Depreciation: Building (as of April 1) Rs. 115,000 Aug 15 Crown trade-in an old truck for a new one the old truck had cost Rs. 11,000 and accumulated depreciation amounted to Rs. 7,000. The list price of the new truck was Rs. 17,000; Crown received a Rs. 5,000 trade-in allowance for the old truck and paid the Rs. 12,000 balance in cash. (Trucks are included in the Vehicles account) Required: Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal
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