Sie sind auf Seite 1von 10

Example
An entity purchased an asset on 1 July 2018 at a cost of \$40,000.
The asset will have a life of 5 years at which time it will be sold
for \$5,000

Required
Prepare the adjusting entry in the general journal to record
depreciation under the straight-line method at 30 June 2019 and
30 June 2020.

1
Workings
General Journal
Date Particulars DR CR

## 30/6/19 Depreciation expense 7,000*

Accumulated depreciation 7,000

## 30/6/20 Depreciation expense 7,000

Accumulated depreciation 7,000

## * (\$40,000 - \$5,000)/5 years

2
Example
Using the same facts as the previous example, plant & equipment
item was purchased on 1 July 2018 for \$40,000. Assume a
depreciation rate of 30%

Required
Prepare the adjusting entry in the general journal to record
depreciation under the reducing balance method at 30 June 2019
and 30 June 2020.

3
Workings
General Journal
Date Particulars DR CR

## 30/6/19 Depreciation expense 12,000*

Accumulated depreciation 12,000

## 30/6/20 Depreciation expense 8,400**

Accumulated depreciation 8,400

## * (\$40,000 - \$0) x 30%

** (\$40,000 - \$12,000) x 30%

4
Example
A photocopier was purchased on 1 July 2018 for \$60,000. It is
estimated to have a useful life of 300,000 hours at which time it
will have a scrap value of \$0. The photocopier was used for 8,000
hours in Year 1 and 10,000 hours in Year 2.

Required
Prepare the adjusting entry in the general journal to record
depreciation under the units of production method at 30 June
2019 and 30 June 2020.

5
Workings
General Journal

Date Particulars DR CR

## 30/6/19 Depreciation expense 1600*

Accumulated depreciation-Equipment 1600

## 30/6/20 Depreciation expense 2,000**

Accumulated depreciation-Equipment 2,000

## * (\$60,000 - \$0)/300,000 hrs = 0.2/hr x 8,000 hrs

** 0.2/hr x 10,000 hrs
6
1. Sold merchandise for \$1 000 plus GST of 10%.
2. Recognised electricity expense of \$20 plus 10% GST

Required:
• Record general journal entry to record sale.
• Record general journal entry to record electricity expense.
• Pay the ATO for GST owing at the end of the month

7
Workings
1. Operating revenue
Dr Cash / Accounts receivable 1 100
Cr GST payable 100
Cr Sales 1 000

2. Operating expenses
Dr Electricity expense 20
Dr GST recoverable 2
Cr Cash / Accounts payable 22

## 3. Forward GST owing to the Tax Office

Dr GST Payable 100
Cr GST Recoverable 2
Cr Cash 98

8
The following trial balance (see below) has been prepared for Jenny’s Beauty Pty Ltd as
at 30 June 2019.

(i) A physical count of supplies on 30 June 2019 disclosed supplies on hand of \$2,100.
(ii) Equipment is depreciated at 25% reducing balance.
(iii) Motor Vehicles are depreciated on a straight line basis with residual value of \$6,000
and an expected useful life of 5 years.
(iv) Prepaid Advertising as at 30 June 2019 totalled \$1,800.
(v) Prepaid Insurance relates to a 12-month premium paid on 1 March 2019.

Required:
for the year ending 30 June 2019.

9
Work Sheet
As at 30th June 2019
balance
Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
Bank 66,000 66,000 66,000
Accounts Receivable 18,000 18,000 18,000
Inventory 22,000 22,000 22,000
Prepaid Insurance 2,700 900 1,800 1,800
Equipment 38,000 38,000 38,000
Accumulated Depreciation - Eq 14,000 6,000 20,000 20,000
Motor Vehicle 56,000 56,000 56,000
Accumulated Depreciation - MV 13,800 10,000 23,800 23,800
Accounts payable 7,000 7,000 7,000
Capital 148,300 148,300 148,300
Retained Profits (1 July 2018) 5,000 5,000 5,000
Sales Revenue 100,000 100,000 100,000
Salaries expense 32,000 32,000 32,000
Cost of Goods Sold 40,000 40,000 40,000
Supplies Expense 11,000 2,100 8,900 8,900
Advertising Expense 2,400 1,800 600 600
Total 288,100 288,100
Supplies 2,100 2,100 2,100
Depreciation - Eq 6,000 6,000 6,000
Depreciation - MV 10,000 10,000 10,000
Insurance Expense 900 900 900
Sub-Total 98,400 204,100
Net Profit 1,600 1,600
Total 20,800 20,800 304,100 304,100 100,000 100,000 205,700 205,700