19. Ali sells a machine for RM50,000 cash on 30 April 2020.The machine cost RM100,000 when it was purchased and hasa carrying value of RM65,000 at the date of disposal. Whatare the journal entries to record the disposal of the machine?a) Dr Accumulated depreciation RM35,000 : Dr Loss ondisposal RMI5,000 ; Dr Cash RM50,000; Cr Non-current assets - cost RM100,000b) Dr Accumulated depreciation RM65,000 ; Dr Loss ondisposal RM35,000; Cr Non-current assets - costRM100,000c) Dr Accumulated depreciation RM35,000 ; Dr CashRM50,000 : Cr Non-current assets RM65,000: CrProfit on disposal RM20,000d) Dr Non-current assets RM65,000 ; Dr Accumulateddepreciation RM35,000 ; Cr Cash RMS0,000 ; CrProfit on disposal RM50,000

>When a long term asset is sold, a loss or gain arising out of that sale or disposal has to be…

19. Ali sells a machine for RM50,000 cash on 30 April 2020. The machine cost RM100,000 when it was purchased and has a carrying value of RM65,000 at the date of disposal. What are the journal entries to record the disposal of the machine? a) Dr Accumulated depreciation RM35,000: Dr Loss on disposal RMI5,000 : Dr Cash RM50,000: Cr Non- current assets - cost RMI00,000 b) Dr Accumulated depreciation RM65,000 ; Dr Loss on disposal RM35,000: Cr Non-curent assets - cost RMI00,000 c) Dr Accumulated depreciation RM35,000: Dr Cash RM50,000: Cr Non-current assets RM65,000: Cr Profit on disposal RM20,000 d) Dr Non-cument assets RM65,000; Dr Accumulated depreciation RM35,000 : Cr Cash RMS0,000: Cr Profit on disposal RMS0,000

19. Ali sells a machine for RM50,000 cash on 30 April 2020. The machine cost RM100,000 when it was purchased and has a carrying value of RM65,000 at the date of disposal. What are the journal entries to record the disposal of the machine? a) Dr Accumulated depreciation RM35,000: Dr Loss on disposal RMI5,000 : Dr Cash RM50,000: Cr Non- current assets - cost RMI00,000 b) Dr Accumulated depreciation RM65,000 ; Dr Loss on disposal RM35,000: Cr Non-curent assets - cost RMI00,000 c) Dr Accumulated depreciation RM35,000: Dr Cash RM50,000: Cr Non-current assets RM65,000: Cr Profit on disposal RM20,000 d) Dr Non-cument assets RM65,000; Dr Accumulated depreciation RM35,000 : Cr Cash RMS0,000: Cr Profit on disposal RMS0,000

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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