HELP on Disposals...!

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:31AM in AAT student discussion
:cry: :?: I HAVE QUESTION FROM AAT INTERMEDIATE PAST EXAM PAPERS JUNE 01 JOURNALS, I REALLY DON'T UNDESTAND IT

Q -D)ON 31 MAY 2001 SOME OF THE FIXTURES AND FITTINGS WERE SOLD. THE ORIGINAL COST OF THE ASSETS WAS £11000 AND THEY WERE BOUGHT ON 1 JUNE 1999. DEPRECIATION PROVISION TO THE DATE OF DISPOSAL WAS MADE IN THE ACCOUNTS. THE DISPOSAL PROCEEDS WERE £7000. THIS MONEY WAS CORRECTLY ENTERED IN THE BANK ACCOUNT, BUT NO OTHER ENTRY WAS MADE.

ANSWER ON THE ANSWER BOOKLET IS
Disposal a/c 11000
Fixtures and fittings at cost 11000

Provision for depreciation(F&F) 4400
Disposal a/c 4400

Suspense 7000
Disposal account 7000

Disposal a/c 400
Profit and loss a/c 400


WHERE THOSE FIGURES ARE COMING FROM AND WHY DO WE HAVE TO SHOW ALL THIS ENTRIES. I DONT UNDERSTAND IT

DO YOU HAVE ANY OTHER ANSWERS? AND COULD YOU EXPLAIN IT TO ME PLEASE

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:HELP on Disposals...!

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