The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of the company car was $8,000, but the company expects the insurance company to pay only $6,000. The correct journal entry to record this information was entered in the books in July 20X2. In August 20X2 the insurance company sent a cheque for $6,500. The journal entry to record this is: Dr Cr $ $ A Bank 6,500 Sundry receivable 6,500 B Bank 6,500 Sundry receivable 6,000 Disposal of non-current assets account 500 C Bank 500 Disposal of non-current assets account 500 D Bank 500 Sundry receivable 500
The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of the company car was $8,000, but the company expects the insurance company to pay only $6,000. The correct journal entry to record this information was entered in the books in July 20X2. In August 20X2 the insurance company sent a cheque for $6,500. The journal entry to record this is: Dr Cr $ $ A Bank 6,500 Sundry receivable 6,500 B Bank 6,500 Sundry receivable 6,000 Disposal of non-current assets account 500 C Bank 500 Disposal of non-current assets account 500 D Bank 500 Sundry receivable 500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The year end for ABC is July 20X2 and in that month a company car was stolen. The net book value of the
company car was $8,000, but the company expects the insurance company to pay only $6,000. The correct
company sent a cheque for $6,500.
The journal entry to record this is:
Dr Cr
$ $
A Bank 6,500
Sundry receivable 6,500
B Bank 6,500
Sundry receivable 6,000
Disposal of non-current assets account 500
C Bank 500
Disposal of non-current assets account 500
D Bank 500
Sundry receivable 500
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