IGCSE Accounting Paper-2: Specimen Questions with Answers 129 - 129 of 189

Question number: 129

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Describe in Detail

The financial year of Suman’s business ends on 30 June. On 1 July 2019 balances in Suman’s ledger included the following. (Marks 10)

The financial year of Suman’s business ends on 30 June. The financial year of Suman’s business ends on 30 June.

$

Machinery

60000

Provision for depreciation on machinery

15000

The following additional information is also provided.

1. Suman depreciates his machinery at the rate of 15 % per annum on cost. Depreciation on new machinery is calculated from the date of purchase.

2. Additional machinery purchases during the year ended 30th June 2020 were:

Additional machinery purchases during the year ended 30th June 2020 Additional machinery purchases during the year ended 30th June 2020

$

1st October 2019

40000

31st March 2020

20000

Purchase on 1st October 2019 was paid for by cheque and that on 1st July 2020 was paid in cash.

3. There were no sales of equipment during the year.

(b) Enter the above transactions in Suman’s ledger accounts below.

Machinery A/c

Provision for Depreciation A/c

Explanation

Machinery A/c

Machinery A/cMachinery A/c

Date

Details

$

Date

Details

$

2019

July 1

Balance b/d

60000

2019

June 30

Balance c/d

120000

Oct 1

Bank A/c

40000

March

31

Bank A/c

20000

120000

120000

2020

July 1

Balance b/d

120000

Provision for Depreciation A/c

Provision for Depreciation A/cProvision for Depreciation A/c

Date

Details

$

Date

Details

$

2019

June 30

Balance c/d

30150

2019

July 1

Balance b/d

15000

June 30

P&L A/c

15150

30150

30150

Provision for Depreciation-

Provision for DepreciationProvision for Depreciation

On 60000@15 % for 12 months

$9000

On 40000@15 % for 9 months

$5400

On 20000@15 % for 3 months

$750

$15150

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