A machine with an original cost of $10000 had been depreciated for two years at the rate of 10% per annum using the straight-line method. It was then sold for cash with the loss on disposal amounting to $700. A replacement machine was bought on the same day for $12400 cash. What was the net decrease in the cash balance? 7707_w24_qp_12 MCQ 2024 Paper 1, Variant 2 View
Sariah owns a business selling ladies’ clothing. She maintains a system of double entry bookkeeping. The following occurred during September 2020. Purchased a motor vehicle on credit from Sharpe Motors $6350. Ruhee, a credit customer, was declared bankrupt owing Sariah $1200. The debt is to be written off. REQUIRED Prepare journal entries to record the above transactions. Narratives are not required. Sariah Journal Details Debit $ Credit $ Sariah is preparing her financial statements for the year ended 30 September 2020. She provides the following information for fixtures and fittings. October 1 Fixtures and fittings at cost $ 28 600 Provision for depreciation of fixtures and fittings 6 185 January 31 Sold fixtures and received a cheque The fixtures had been purchased on 1 February 2018 for $1500 1 150 March 31 Purchased new fixtures paying by cheque 3 500 Sariah’s policy is to provide depreciation on fixtures and fittings at 10% per annum using the reducing balance method. A full year’s depreciation is charged in the year of purchase but none in the year of disposal. REQUIRED Prepare the following accounts for the year ended 30 September 2020. Close the accounts by balancing or by making an appropriate year end transfer. Sariah Fixtures and fittings account Date Details $ Date Details $ Provision for depreciation of fixtures and fittings account Date Details $ Date Details $ Disposal account Date Details $ Date Details $ Sariah is considering forming a partnership with her friend Emy who runs a similar business. REQUIRED Advise Sariah whether or not she should form a partnership with Emy. Justify your answer with two advantages and two disadvantages of forming a partnership with Emy. 7707_w20_qp_23 THEORY 2020 Paper 2, Variant 3 View