HELP needed on journal entries.........please

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
In the Osborne book, simulation 1, task 8.

Q Credit entry on the suspense a/c ( bank £1124.55) is the proceeds on disposal of a fixed asset included in the category "other fixed assets". No other entries have been made in the main ledger in respect of this disposal. The asset cost £2317.69, and its acc depn at 31 March 2003 was £946.23. You are required to draft journal entries dated 31 March 2004 (which is y/e), to clear the balance on the suspense a/c.

No Depn in year of disposal is made.

Any help is greatly appreciated............My God look at the time. :(

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP needed on journal entries.........please

    The best way to go about this is to start by drawing up a T account for disposals:

    Dr 2317.69 (Cr Other FA Cost)
    Cr 946.23 (Dr Acc Dep)
    Cr 1124.55 (Dr Bank)
    Cr 246.91 (Dr Loss on disposal - P&L)

    Use the journal to post the double entries from the disposals account and the balance of these into the suspense account like so:

    Cr Other FA Cost 2317.69
    Dr Acc Dep 946.23
    Dr Loss on disposal - P&L 246.91
    Dr Suspense 1124.55 (2317.69 - (946.23 + 246.91))

    And there you have your cleared suspense account

    Chris




  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP needed on journal entries.........please

    Thanks for your reply Chris, the information you gave helped alot.

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