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Lecture 3 (HW Sol)

The document provides detailed financial accounting entries related to Plant and Machinery, Furniture, and Vehicles, including their costs, accumulated depreciation, and disposal transactions. It includes calculations for depreciation expenses based on the cost and duration of asset ownership. The document also outlines specific transactions related to the disposal of vehicles and their associated gains or losses.

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Idrees Ullah
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10 views

Lecture 3 (HW Sol)

The document provides detailed financial accounting entries related to Plant and Machinery, Furniture, and Vehicles, including their costs, accumulated depreciation, and disposal transactions. It includes calculations for depreciation expenses based on the cost and duration of asset ownership. The document also outlines specific transactions related to the disposal of vehicles and their associated gains or losses.

Uploaded by

Idrees Ullah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CAF-01 Financial Accounting and Reporting -1

Lecture # 3 (PPE) Lecture # 3 (Over all)


Answer-22

Dr. Plant and Machinery - At Cost Cr.


1.1.01 b/d 600,000
1.1.01 Cash 60,000
31.12.01 c/d 660,000
Dr. Accumulated Depreciation - Plant and Machinery Cr.
1.1.01 b/d 200,000
31.12.01 Dep. Exp 132,000
31.12.01 c/d 332,000

Depreciation: On opening assets (600,000  20%) 120,000


On addition (60,000  20%) 12,000
132,000
Dr. Furniture – A/C Cr.
1.1.01 b/d 700,000
1.6.01 Cash 80,000
31.12.01 c/d 780,000
Dr. Accumulated Depreciation – Furniture Cr.
1.1.01 b/d 130,000
31.12.01 Dep. Exp 74,667
31.12.01 c/d 204,667
Depreciation: On opening assets (700,000  10%) 70,000
On addition (80,000  10%  7/12) 4,667
74,667
Dr. Vehicle a/c Cr.
1.1.01 b/d 800,000
1.9.01 Cash 70,000
31.12.01 c/d 870,000
Dr. Accumulated Depreciation – Vehicle a/c Cr.
1.1.01 b/d 170,000
31.12.01 Dep. Exp 205,833
31.12.01 c/d 375,833

Depreciation : On opening (800,000  25%) 200,000


On addition (70,000  25%  4/12) 5,833
205,833

Crescent College of Accountancy Page 1


CAF-01 Financial Accounting and Reporting -1
Answer-23
Dr. Vehicle A/C Cr.
1.1.07 b/d 1,400,000
1.3.07 Cash 200,000 31.3.07 Disposal 40,000
1.5.07 Cash 250,000 30.6.07 Disposal 70,000
1.6.07 Cash 23,000 30.11.07 Disposal 90,000
31.12.07 c/d 1,673,000
Dr. Accumulated Dep. A/c Cr.
31.3.07 Disposal (W-2) 10,500 1.1.07 b/d 650,000
30.6.07 Disposal(W-2) 35,000
30.11.07 Disposal(W-2) 18,000 Depreciation Exp (W-1) 251,138
31.12.07 c/d 837,638
WORKINGS
(W-1) Depreciation Expense
On opening excluding disposals
(1,400,000 – 40,000 – 70,000 – 90,000) x 15% 180,000
On additions
(200,000  15%  10/12)+
(250,000  15%  8/12) +
(23,000  15%  7/12) 52,013
On disposals
(40,000  15%  3/12) +
(70,000  15%  6/12) +
(90,000  15%  11/12) 19,125
251,138
(W-2) Accumulated Dep. Of Disposals
Disposal on 31.3.07 (1 year and 9 months) (40,000  15%  1.75) 10,500
Disposal on 30.6.07 (3 year and 4 months) (70,000  15 %  3.3333) 35,000
Disposal on 30.11.07 (1 year and 4 months) (90,000  15%  1.3333) 18,000
63,500
Disposal 01
31-03 Vehicle 1 40,000 31-03 Accumulated depreciation 10,500
31-03 Cash 2,300
31-03 P/L (Bal.) 27,200

Disposal 02
30-06 Vehicle 2 70,000 30-06 Accumulated depreciation 35,000
30-06 Cash 4,700
30-06 P/L (Bal.) 30,300
Disposal 03
30-11 Vehicle 3 90,000 30-11 Accumulated depreciation 18,000
30-11 Cash 6,600
30-11 P/L (Bal.) 65,400

Crescent College of Accountancy Page 2

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