Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal
Q#5 During the current year, Crown Developers disposed of plant assets in the following transactions:
Feb 10 Office equipment costing Rs. 14,000 was given to a scrap dealer. No proceeds were received for the scrap dealer. At the date of disposal,
Apr. 1 Crown sold land and a building to Villa Associates for Rs. 630,000 receiving Rs. 200,000 in cash and a 5-year, 10% note receivable for Rs. 430,000. Crown’s accounting records showed the following amounts:
Land Rs. 120,000
Building Rs. 350,000
Accumulated Depreciation: Building (as of April 1) Rs. 115,000
Aug 15 Crown trade-in an old truck for a new one the old truck had cost Rs. 11,000 and accumulated depreciation amounted to Rs. 7,000. The list price of the new truck was Rs. 17,000; Crown received a Rs. 5,000 trade-in allowance for the old truck and paid the Rs. 12,000 balance in cash. (Trucks are included in the Vehicles account)
Required:
Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal
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