9.5 Irish Catering started in business on 1 January 2010, its financial year ending 31 December. The company purchased its industrial equipment as follows: Year Date of Purchase Amount ($) 2010 50,000.00 90,000.00 1-Jan 20-Oct 2011 15-Feb 80,000.00 60,000.00 20-Nov 2012 20-Mar 120,000.00 During 2012, the company sold assets purchased on 1 January 2010 (original cost $30,000) for $20,000. Depreciation is at the rate of 10% per annum using the straight-line method, depreciating based on assets in existence at the end of the year. You are required to show the following for 2010, 2011 and 2012 a) The plant and equipment account
9.5 Irish Catering started in business on 1 January 2010, its financial year ending 31 December. The company purchased its industrial equipment as follows: Year Date of Purchase Amount ($) 2010 50,000.00 90,000.00 1-Jan 20-Oct 2011 15-Feb 80,000.00 60,000.00 20-Nov 2012 20-Mar 120,000.00 During 2012, the company sold assets purchased on 1 January 2010 (original cost $30,000) for $20,000. Depreciation is at the rate of 10% per annum using the straight-line method, depreciating based on assets in existence at the end of the year. You are required to show the following for 2010, 2011 and 2012 a) The plant and equipment account
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer only required a, b
Transcribed Image Text:9.5 Irish Catering Ltd. started in business on 1 January 2010, its financial year ending 31 December. The
company purchased its industrial equipment as follows:
Year Date of Purchase Amount ($)
2010
50,000.00
20-Oct 90,000.00
1-Jan
2011
15-Feb 80,000.00
20-Nov 60,000.00
2012
20-Mar 120,000.00
During 2012, the company sold assets purchased on 1 January 2010 (original cost $30,000) for $20,000.
Depreciation is at the rate of 10% per annum using the straight-line method, depreciating based on
assets in existence at the end of the year.
You are required to show the following for 2010, 2011 and 2012
a) The plant and equipment account
b) The accumulated depreciation account
c) The disposal of plant and equipment account for 2012
d) Extracts from the income statement and the statement of financial position
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