b. Transfer the profit or loss on disposal to the Profit and Loss account on 30 June. Note: As the accumulated depreciation has been provided at the date of sale, no further depreciation entries are required, and the Depreciation ledger account should have no entries General Ledger Extract Folio Debit Credit Balance N/A N/A 13,000 Date Details Machinery 30/11/XX Balance N/A 30/11/XX Machinery disposal N/A Accumulated Depreciation 30/11/XX Balance 30/11/XX Depreciation Bank 30/11/XX Balance N/A 30/11/XX Accounts receivable N/A dr GST Collected 30/11/XX Disposal N/A N/A Depreciation 30/11/XX Profit and loss N/A N/A Disposal 30/11/XX Machinery Accumulated N/A N/A depreciation Accounts receivable Profit on disposal N/A Profit on Disposal 30/11/XX Disposal N/A 30/06/XX Depreciation N/A 620,000 DR 25,000 595,000 DR 280,000 CR 267,000 CR General Journal - O'Reilly Pty Ltd Date Details 30/11/XX Disposal Machinery Transfer asset cost to Disposal Account 30/11/XX Accumulated depreciation (Machinery) Disposal Transfer asset accumulated depreciation to Disposal Account 30/11/XX Account receivable (Cash) Disposal GST collected Sale of asset to Jake Strong 30/11/XX Disposal Profit on disposal Profit on disposal of asset 30/6/XX Profit on disposal Profit and loss Transfer Profit on disposal of asset to Profit and Loss account Debit Credit 25,000 25,000 13,000 13,000 14,300 13,000 1,300 12,000 12,000 12,000 12,000
b. Transfer the profit or loss on disposal to the Profit and Loss account on 30 June. Note: As the accumulated depreciation has been provided at the date of sale, no further depreciation entries are required, and the Depreciation ledger account should have no entries General Ledger Extract Folio Debit Credit Balance N/A N/A 13,000 Date Details Machinery 30/11/XX Balance N/A 30/11/XX Machinery disposal N/A Accumulated Depreciation 30/11/XX Balance 30/11/XX Depreciation Bank 30/11/XX Balance N/A 30/11/XX Accounts receivable N/A dr GST Collected 30/11/XX Disposal N/A N/A Depreciation 30/11/XX Profit and loss N/A N/A Disposal 30/11/XX Machinery Accumulated N/A N/A depreciation Accounts receivable Profit on disposal N/A Profit on Disposal 30/11/XX Disposal N/A 30/06/XX Depreciation N/A 620,000 DR 25,000 595,000 DR 280,000 CR 267,000 CR General Journal - O'Reilly Pty Ltd Date Details 30/11/XX Disposal Machinery Transfer asset cost to Disposal Account 30/11/XX Accumulated depreciation (Machinery) Disposal Transfer asset accumulated depreciation to Disposal Account 30/11/XX Account receivable (Cash) Disposal GST collected Sale of asset to Jake Strong 30/11/XX Disposal Profit on disposal Profit on disposal of asset 30/6/XX Profit on disposal Profit and loss Transfer Profit on disposal of asset to Profit and Loss account Debit Credit 25,000 25,000 13,000 13,000 14,300 13,000 1,300 12,000 12,000 12,000 12,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On 31 December, a finishing machine was sold.
Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale.
The machine was sold for cash to jake strong for $14300 (including GST)
Balance date is 30 June
Complete the following table in image 2 based off the general ledger in image 1. All of the table must be complete including balance column.
Transcribed Image Text:b. Transfer the profit or loss on disposal to the Profit and Loss account on 30 June.
Note: As the accumulated depreciation has been provided at the date of sale, no further depreciation
entries are required, and the Depreciation ledger account should have no entries
General Ledger Extract
Folio
Debit
Credit
Balance
N/A
N/A
13,000
Date
Details
Machinery
30/11/XX Balance
N/A
30/11/XX Machinery disposal
N/A
Accumulated Depreciation
30/11/XX Balance
30/11/XX Depreciation
Bank
30/11/XX Balance
N/A
30/11/XX Accounts receivable
N/A
dr
GST Collected
30/11/XX Disposal
N/A
N/A
Depreciation
30/11/XX Profit and loss
N/A
N/A
Disposal
30/11/XX Machinery
Accumulated
N/A
N/A
depreciation
Accounts receivable
Profit on disposal
N/A
Profit on Disposal
30/11/XX Disposal
N/A
30/06/XX Depreciation
N/A
620,000 DR
25,000
595,000 DR
280,000 CR
267,000 CR
Transcribed Image Text:General Journal - O'Reilly Pty Ltd
Date
Details
30/11/XX Disposal
Machinery
Transfer asset cost to Disposal Account
30/11/XX Accumulated depreciation (Machinery)
Disposal
Transfer asset accumulated depreciation to Disposal Account
30/11/XX Account receivable (Cash)
Disposal
GST collected
Sale of asset to Jake Strong
30/11/XX Disposal
Profit on disposal
Profit on disposal of asset
30/6/XX Profit on disposal
Profit and loss
Transfer Profit on disposal of asset to Profit and Loss account
Debit
Credit
25,000
25,000
13,000
13,000
14,300
13,000
1,300
12,000
12,000
12,000
12,000
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