On 31 December, a finishing machine was sold. Accumulated depreciation to 30 June was $10,000. The depreciation for 6 months ended 31 December was $3,000. 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 $14,300 (including GST). Balance date is 30 June. a. Record General Journal entries to account for the depreciation 6 months ended 31 December and the sale of the finishing machine and post to the relevant ledger accounts. General Journal – O’Reilly Pty Ltd Date Details Debit Credit 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
On 31 December, a finishing machine was sold.
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a. Record General |
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General Journal – O’Reilly Pty Ltd |
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Date |
Details |
Debit |
Credit |
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30/11/XX |
Disposal |
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Machinery |
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Transfer asset cost to Disposal Account |
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30/11/XX |
Accumulated depreciation (Machinery) |
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Disposal |
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Transfer asset accumulated depreciation to Disposal Account |
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30/11/XX |
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Disposal |
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GST collected |
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Sale of asset to Jake Strong |
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30/11/XX |
Disposal |
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Profit on disposal |
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Profit on disposal of asset |
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30/6/XX |
Profit on disposal |
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Transfer Profit on disposal of asset to Profit and Loss account |
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