Journals
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Hi there am just doing a homework for college and am a little stuck just wondering if anyone could shead some light.
In the addtional information it says:
Fixed assets that had cost £2,300,000 and had accumulated depreciation of £1,250,000 were sold at the end of the year for £1,500,000 cash. The sale has not been accounted for in the ledger accounts in the extended Trial Balance.
Could anyone please help me on how to do the journal entry for this???
In the addtional information it says:
Fixed assets that had cost £2,300,000 and had accumulated depreciation of £1,250,000 were sold at the end of the year for £1,500,000 cash. The sale has not been accounted for in the ledger accounts in the extended Trial Balance.
Could anyone please help me on how to do the journal entry for this???
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Comments
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Re:Journals
Haven't seen an ETB for almost a year now but if I remember correctly (and from quickly scribbling the T accounts on a piece of paper!), the journal entries would be;
Credit fixed asset account £2,300,000 (balance sheet)
Debit bank account £1,500,000 (balance sheet)
Credit gain on sale of fixed asset £450,000 (P&L)
Debit accumulated asset depreciation £1,250,000 (balance sheet)
As I said, I've done it quickly so if anyone can see any errors in this please let us know!
Regards,
Robert
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