Journal Entry : Journal entry is a way of recording the financial transaction of the company related to certain dates that shows chronological effect in the books of accounts. Journal entries are recorded on the basis of dual aspect accounting method. Accounting Rules for Journal Entries: ⮚ To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains. ⮚ To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains. Assets Disposal: Assets when disposed off may be beneficial for the company which is totally depends on the book value of the assets. If disposal amount is greater than book value there would be profit otherwise loss to the company. To prepare: journal entry to record the partial year’s depreciation on July 1, 2021 and to record the disposal under the given assumptions for R Company.

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Chapter 10, Problem 17E

To determine

Journal Entry:

Journal entry is a way of recording the financial transaction of the company related to certain dates that shows chronological effect in the books of accounts. Journal entries are recorded on the basis of dual aspect accounting method.

Accounting Rules for Journal Entries:

⮚ To increase balance of the account: Debit assets, expenses, losses and credit all liabilities, capital, revenue and gains.

⮚ To decrease balance of the account: Credit assets, expenses, losses and debit all liabilities, capital, revenue and gains.

Assets Disposal:

Assets when disposed off may be beneficial for the company which is totally depends on the book value of the assets. If disposal amount is greater than book value there would be profit otherwise loss to the company.

To prepare: journal entry to record the partial year’s depreciation on July 1, 2021 and to record the disposal under the given assumptions for R Company.

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