Prepare journal entries to record the following transactions. You are required to show all calculations: 3.1 3.2 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance.
Prepare journal entries to record the following transactions. You are required to show all calculations: 3.1 3.2 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare journal entries to record the following transactions. You are required to show all
calculations:
3.1
3.2
Entry
The company adopted the straight-line depreciation method. Record the 15% depreciation on
the plant and equipment purchased On 1 December 2020 for R125 000.
The allowance for credit losses account has an opening balance of R4 500. The policy
requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger
totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial
manager instructed the write off on the balance.
General Ledger
Debit
Credit
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