Half of Remaining miles flew in 2005. ● It is expected that the vehicle will sell for Rs 17,500 at the end of its useful life in two years' time. Requirements: . Prepare all journal entries for the year ended 31 December 2002 to 31 December 2005. ● Prepare relevant Financial statements as at 31 December 2004 - 2005.
Half of Remaining miles flew in 2005. ● It is expected that the vehicle will sell for Rs 17,500 at the end of its useful life in two years' time. Requirements: . Prepare all journal entries for the year ended 31 December 2002 to 31 December 2005. ● Prepare relevant Financial statements as at 31 December 2004 - 2005.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rahat and company Operates in the building industry. the following information related to property
plant and equipment as at 31 December 2003.
Date of
purchase
Cost/carrying Residual
value Rs.
Useful life
value
Years.
Rs.
1 jan 2001
Equipment
Aircraft:
140,000(wd)
0
1 jan 2001
380,000
80,000
80,000
0
200,000
80,000
100,000
0
Vehicle
1 jan 2003
100,000
10,000
4
Additional information;
●
The equipment was partially repaired on 5 Jan 2004 at a cost of Rs 30,000. this was paid for
on the date of repair.
.
It was inspected on 31 December 2004 at a cost of Rs 171,000. this was paid for on the date
of inspection.
●
It has been estimated that next major inspection will cost Rs 205,000.
●
The air craft flew 3000,2000,1000 and 3000 miles in 2001,2002,2003 and 2004.
●
Half of Remaining miles flew in 2005.
●
It is expected that the vehicle will sell for Rs 17,500 at the end of its useful life in two years'
time.
Requirements:
.
Prepare all journal entries for the year ended 31 December 2002 to 31 December
2005.
●
Prepare relevant Financial statements as at 31 December 2004 - 2005.
O Body work
O Engine
O
inspection
7
8
15,000 miles
4
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