Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Exercise 15.1 Credit purchase of a non-current asset

Explanation

b General Journal
General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

c Cash Payments Journal

Date Details Ch. Bank Disc. Creditors Stock Wages Sundries GST
No. Rev. Control Control

d General Ledger
Display Cabinets
Date Cross-reference Amount Date Cross-reference Amount
$ $
May 1 Balance 14 000

Sundry Creditor – Carl’s Cabinets

Date Cross-reference Amount Date Cross-reference Amount
$ $

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Exercise 15.3 Credit purchase of a non-current asset

Definition

b General Journal
General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

c MATT’S MOWERS
Balance Sheet (extract) as at 30 April 2015
$ $

Explanation

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Exercise 15.5 Reducing balance depreciation

Assumption

Calculation

Depreciation of van – year ended 30 June 2015 $

c General Journal
General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

d BENANEE RUBBER
Balance Sheet (extract) as at 30 June 2015
$ $
Non-Current Assets

Calculation

Depreciation of van – year ended 30 June 2016 $

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Qualitative Characteristic
Explanation

Calculation

Year of purchase

Exercise 15.7 Comparing depreciation methods

Reason

Reason

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Calculation

Year ended 31 December:

Exercise 15.8 Graphing depreciation

Depreciation method
Photocopiers
Office Equipment

Line A

Line B

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

c General Ledger
Van (A)
Date Cross-reference Amount Date Cross-reference Amount
$ $
Aug. 1 Balance 24 000

Accumulated Depreciation of Van (–A)

Date Cross-reference Amount Date Cross-reference Amount
$ $
Aug. 1 Balance 19 000

Disposal of Van
Date Cross-reference Amount Date Cross-reference Amount
$ $

Loss on Disposal of Van (E)

Date Cross-reference Amount Date Cross-reference Amount
$ $

d PARTY POTS
Cash Flow Statement (extract) for August 2015
Item Operating/Investing/Financing Inflow/Outflow Amount
$

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

d General Ledger
Fittings (A)
Date Cross-reference Amount Date Cross-reference Amount
$ $
Jan. 1 Balance 36 000

Accumulated Depreciation of Fittings (–A)

Date Cross-reference Amount Date Cross-reference Amount
$ $
Jan. 1 Balance 32 800

Disposal of Fittings
Date Cross-reference Amount Date Cross-reference Amount
$ $

Profit on Disposal of Fittings (R)

Date Cross-reference Amount Date Cross-reference Amount
$ $

Reason 1

Reason 2

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

General Journal
General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

Exercise 15.12 Trade-in of a non-current asset

Definition

b General Journal
General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Exercise 15.13 Trade-in of a non-current asset

a General Journal
General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

b General Ledger
Cash Register
Date Cross-reference Amount Date Cross-reference Amount
$ $
June 1 Balance 4 000

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

Exercise 15.14 Disposal of a non-current asset and financial reports

a/c General Journal

General Subsidiary
Ledger Ledger
Date Details Debit Credit Debit Credit
$ $ $ $

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Chapter 15 Accounting for Non-Current Assets – Proformas for exercises

d KYABRAM KITES
Income Statement for June 2015
$ $

Action 1

Action 2

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