10-04-2011, 08:31 AM
Can anyone tell me how these adjusting entries will be treated in the final accounts ie P&L and Balance Sheet?
1.An item of plant, originally purchased for £500,000 on 1 March 2008, was sold on
2 December 2010 for £390,000. No entries or adjustments have been made to the
trial balance as at 31 December 2010 for this sale except to debit the sale proceeds to
bank and credit a suspense account with the equal and opposite entry. Depreciation is
charged by Duo for a full year in the year of purchase and none in the year of sale.
2.During the year an item of plant costing £350,000 and with accumulated depreciation
of £110,000 was sold for £190,000. The sale proceeds have not yet been received and
no adjustments have been made to the accounts in respect of the sale of the plant.
1.An item of plant, originally purchased for £500,000 on 1 March 2008, was sold on
2 December 2010 for £390,000. No entries or adjustments have been made to the
trial balance as at 31 December 2010 for this sale except to debit the sale proceeds to
bank and credit a suspense account with the equal and opposite entry. Depreciation is
charged by Duo for a full year in the year of purchase and none in the year of sale.
2.During the year an item of plant costing £350,000 and with accumulated depreciation
of £110,000 was sold for £190,000. The sale proceeds have not yet been received and
no adjustments have been made to the accounts in respect of the sale of the plant.
