
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.
1.
To prepare: Journal entry to record
To prepare: Journal entry to record additions in the books of V Company.
To prepare: Journal entry to record the disposal in the books of V Company.
To explain: Whether the given impairments increase or decrease the property, plant and equipment.

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Chapter 10 Solutions
Fundamental Accounting Principles
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