Question 20

a. ii.
Machine 1 Machine 2 Machine 3
31/12/03 9000*20% 9000*20% 3600
1800 1800
2004 1800 1800 3600

2005 1800 1800 3600

2006 Sold 1800 12000*20 4200

Total 2400
depreciation
$5400

b.
Machinery account

Date Details $ Date Details $

1/1/03 Bank 18000 31/12/03 Balance c/d 18000
18000 18000
01/1/4 Balance b/d 18000 31/12/04 Balance c/d 18000
18000 18000
01/1/5 Balance b/d 18000 31/12/05 Balance c/d 18000
18000 18000
01/1/6 Balance b/d 18000 1/7/06 Disposal 9000
30/06/06 Western 12000 Balance c/d 21000
30000 30,000
1/1/07 Balance b/d 21,000
 Provision for depreciation on machinery account

Date Details $ Date Details $

31/12/03 Balance c/d 3600 31/12/03 Income 3600
statement
3600 3600
31/12/04 Balance c/d 7200 1/1/04 Balance b/d 3600
31/12/04 Income 3600
statement
7200 7200
1/1/05 Balance b/d 7200
31/12/05 Balance c/d 10800 31/12/05 Income 3600
statement
10,800 10,800
1/7/06 Disposal 5400 1/1/06 Balance b/d 10,800
31/12/06 Balance c/d 9600 31/12/06 Income 4200
statement
15,000 15,000
1/1/07 Balance b/d 9600

Disposal on machinery account

Date Details $ Date Details $

1/7/06 Machinery 9000 31/1206 Provision for 5400
depreciation
1/7/06 Cash 2800
31/12/06 Income 800
statement
9000 90000
Question 21

a. X
b. X
c.
30/9/05 2000
10,000*20%
2000

10,000*20% 4000*20% 2800

2000 800
30/9/06

5000*20% 4000*20% 1800

30/09/07 1000 800

5000*20%=1000*2=$2000
0r
4000/2=$2000disposal

Equipment account

Date Details $ Date Details $

1/10/04 Super quip 10,000 30/09/05 Balance c/d 10,000
10,000 10,000
01/10/5 Balance b/d 10,000 30/09/06 Balance c/d 14000
1/10/05 Bank 4000
14000 14,000
01/10/6 Balance b/d 14,000 31/03/07 Disposal 5000
30/09/07 Balance c/d 9000
14,000 14,000
1/10/07 Balance b/d 9,000
 Provision for depreciation on machinery account

Date Details $ Date Details $

30/09/05 Balance c/d 2000 30/09/05 Income 2000
statement
2000 2000
30/09/06 Balance c/d 4800 1/10/05 Balance b/d 2000
30/09/06 Income 2800
statement
4800 4800
Disposal 2000 1/10/06 Balance b/d 4800
30/09/07 Balance c/d 4600 30/09/07 Income 1800
statement
6600 6600
1/10/07 Balance b/d 4600

Disposal on Equipment account

Date Details $ Date Details $

31/3/07 Equipment 5000 30/09/07 Provision for 2000
depreciation
31/03/07 Cash 1800
Income 1200
statement
(loss)
5000 5000
Part d:

Extract income statement 2007

Expenses :
Provision for depreciation $1800
Disposal loss on equipment $1200

Part e:

Extract statement of financial position

Non-current Cost Accumulated Net book value

assets $ Depreciation $
$
Office 9000 4600
equipment
Question 22

Dave’s

Income statement for the year ended 31/07/09

$ $
Fees 102000
- Expenses
Office expenses 11,550
Rates (11400-320) 11080
Wages &salaries 42,500
Motor expenses 3650
Bank charges 140
Provision for depreciation on :fixtures 950
:motor van 4480 (74,350)
Profit from operation 27650
- Loan interest (300+300) (600)
Profit for the year 27050
Dave’s

Statement of financial position as at 31/07/09

Non-current assets Cost Accumulated Net book

depreciation value
Premises 55,000 - 55,000
Fixtures 9500 1900 7600
Motor vehicle 28,000 10,080 17920
92500 11980 80,520
Current assets
Trade receivable 7800
Other receivable 320 8120
Total assets 88,640
Equity &liabilities
Capital 68,000
+profit for the year 27050
-drawings (18600)
Total equity 76450
Non-current liabilities
Loan 10,000
Current liabilities
Trade payable 590
Other payable 300
Bank overdraft (-1160-140) 1300 2190
Total equity & liabilities 88640
Varsha

Income statement for the year ended 31 December 2000

Revenue 190,000
- Cost of sales /cost of goods sod
Opening inventory 7000
(+)purchases 120,000
- Drawings – inventory (940)
(-)closing inventory (8500)
(117,560)
Gross profit 72440
+ other income
Discount received 1950
Commission received(4000+200) 4200 6150
78590
(-)expenses
Operating expenses 21200
Salaries &wages (31750+2140) 33890
Rates &insurance (9200-960) 8240
Provision for depreciation :equipment 1900
:motor vehicle 1536 (66766)
Profit from operation 11824
- Loan interest (90+90) (180)
Profit for the year 11,644
 Cost Accumulated Netbook
Deprecation Value
Non-current assets
Premises 40,000 - 40,000
Motor vehicle 12,000 5856 6144
Equipment 19,000 7600 11,400
Current assets 71000 13,456 57544
Inventory 8500
Trade receivable 14,400
Other receivable (200+960) 1160
Cash at bank 5790 29850
Total assets 87394
Equity and liabilities
Capital 68000
(+)profit for the year 11,644
(-)drawings (9420)
Total equity /closing capital 70224
Non-current liabilities
Loan 6000
Current liabilities
Trade payable 8940
Other payable (2140+90) 2230 11170
Total capital &liabilities 87394