Fabrisio Ltd

General Journal

1

Ref/Date Particulars Amount (Dr) Amount (Cr)1/1/2000 Truck a/c 250,000 250,000

Cash a/c 250,000 250,000(Being trucks purchased for cash)

31/12/2005

Depreciation expense a/c 30,000

Accumulated depreciation a/c 30,000(Being trucks depreciation recorded)

1/1/2006 Truck a/c 50,000 Revaluation reserve a/c 50,000(Being trucks carrying value revaluated )

31/12/2006

Depreciation expense a/c 20,000

Accumulated depreciation a/c 20,000(Being trucks depreciation recorded)

31/12/2006

Cash a/c 27,000

Accumulated deprecation a/c 10,000Loss of sale a/c 23,000 Truck 60,000(Being truck sold )

(e) None, when the trucks has been fully depreciated it will not charge any depreciation expense anymore

Working Notes

(b) (250,000-10,000)/7

= 30,000

(c) 6th year deprecation = 6*30,000=180,000

Carrying amount= 250,000-180,000=70,000

Revaluation of 2trucks = 25,000*2 = 50,000

New value of trucks after revaluation = 70,000+50,000= 120,000

(d) Carrying amount (2trucks) =120,000-20,000=100,000

Loss from sales= sales – carrying amount= 27,000-50,000=-23,000

Gohart Ltd.

General Journal

Date Particulars Amount (Dr) Amount (Cr)11/07/2013

Bills Receivable a/c 8,000

Account Receivable a/c 8,000(Being promissory note accepted )

1/08/2013 Provision for doubtful debt a/c 820 Account receivable a/c 820(Being debt wrote off as bad debts)

9/09/2013 Cash at bank a/c 8,091 Bills Receivable a/c 8,000 Interest Revenue a/c 91( Being receivable from Jones s J was discounted at the bank )

9/10/2013 Account Receivable a/c 8,167.81 Protest charge a/c 10 Bills receivable a/c 8,000 Interest receivable a/c 157.81(Being bills receivable defaulted with protest fee)

8/11/2013 Cash a/c 8,234.94 Account receivable a/c 8,167.81 Interest revenue a/c 67.13(Being cash received from Jones )

3/12/2013 Cash a/c 500Bills receivable a/c 8,500 Account receivable 9,000(Being received cash and \a 60 -day, 10% bill of exchange acceptance from P Pullman )

28/12/2013

Cash a/c 6,270

Credit card expenses a/c 330 Sales revenue a/c 6,600

(Being cash received from sales and credit card expense)

31/1/2014 Cash a/c 8,637 Bills receivable a/c 8,500 Interest revenue a/c 137(Being received payment from Pullma )

2/5/2014 Bills receivable a/c 7,000 Account receivable-Solomon a/c 7,000(Being settlement of account receivable of Solomon)

10/6/2014 Cash a/c 708.75 Credit card expenses a/c 41.25 Sales revenue a/c 750(Being cash and credit expenses generated from sales revenue )

30/6/2014 Interest receivable a/c 124.47 Interest revenue 124.47(Being interest revenue generated from Solomon)

30/6/2014 Bad debt expenses a/c 3,280 Allowance for bad debts a/c 3,280(Being allowance for doubtful debt created)

Working Notes

September 9

Interest at the end of maturity = 800*0.08* 90/365 = 157.81

Maturity value = principal + interest = 8000 +157.81 = 8,157.81

Discount = 8,157.81*0.1*30/365 = 67

Proceeds from sales = 8157-67=8091