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Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000

Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7E
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Assume that Yousuf & Sons company purchased equipment for OMR 12000 on 31st December 2014. The company charging OMR 2400 depreciation per annum by following straight-line depreciation method. The company charged total depreciation till 31December 2017 is OMR 7200 and the company decided to sell this equipment for OMR 3500 on 31st Mar2018. Find out the profit or loss on sale of equipment and pass the journal entry in the books of Yousuf& Sons Company. a. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 Dr Loss on sale of equipment OMR 700 and Equipment A/c OMR 12000 b. Dr Cash A/C OMR 3500 Dr Accumulated depreciation OMR 7800 and Cr Equipment A/C 11300 c. None of the given options d. Dr Cash OMR 3500 Dr Accumulated depreciation OMR 7200 Dr Loss on sale of Equipment OMR 1300 and Cr Equipment A/C 12000
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