|
Solution
9.10
|
DR
|
Equipment
Account
|
CR
|
|
|
|
€
|
|
|
€
|
|
1/1/Y1
|
Bank
a/c
|
22,000
|
|
|
|
|
1/10/Y1
|
Bank
a/c
|
10,000
|
31/12/Y1
|
Bal
c/d
|
32,000
|
|
|
|
32,000
|
|
|
32,000
|
|
1/1/Y2
|
Bal
b/d
|
32,000
|
1/10/Y2
|
Disposal
a/c
|
8,000
|
|
|
|
|
31/12/Y2
|
Bal
c/d
|
24,000
|
|
|
|
32,000
|
|
|
32,000
|
|
1/1/Y3
|
Bal
b/d
|
24,000
|
|
|
|
|
DR
|
Provision
for Depreciation of Equipment Account
|
CR
|
|
|
|
€
|
|
|
€
|
|
31/12/Y1
|
Bal
c/d
|
3,200
|
31/12/Y1
|
P
& L a/c
|
3,200
|
|
1/10/Y2
|
Disposal
a/c
|
800
|
1/1/Y2
|
Bal
b/d
|
3,200
|
|
31/12/Y2
|
Bal
c/d
|
4,800
|
21/12/Y2
|
P
& L a/c
|
2,400
|
|
|
|
5,600
|
|
|
5,600
|
|
|
|
|
1/1/Y3
|
Bal
b/d
|
4,800
|
|
DR
|
Disposal
Account
|
CR
|
|
|
|
€
|
|
|
€
|
|
1/10/Y2
|
Equipment
a/c
|
8,000
|
1/10/Y2
|
Depreciation
a/c
|
800
|
|
|
|
|
1/10/Y2
|
Bank
a/c
|
5,000
|
|
|
|
|
1/10/Y2
|
P
& L a/c
|
2,200
|
|
|
|
8,000
|
|
|
8,000
|
|
DR
|
Fixtures
Account
|
CR
|
|
|
|
€
|
|
|
€
|
|
1/1/Y1
|
Bank
a/c
|
30,000
|
31/12/Y1
|
Bal
c/d
|
30,000
|
|
1/1/Y2
|
Bal
b/d
|
30,000
|
|
|
|
|
1/7/Y2
|
Bank
a/c
|
5,000
|
31/12/Y2
|
Bal
c/d
|
35,000
|
|
|
|
35,000
|
|
|
35,000
|
|
1/1/Y3
|
Bal
b/d
|
35,000
|
|
|
|
|
DR
|
Provision
for Depreciation of Equipment Account
|
CR
|
|
|
|
€
|
|
|
€
|
|
31/12/Y1
|
Bal
c/d
|
3,750
|
31/12/Y1
|
P
& L a/c
|
3,750
|
|
|
|
|
1/1/Y2
|
Bal
b/d
|
3,750
|
|
31/12/Y2
|
Bal
c/d
|
8,125
|
31/12/Y2
|
P
& L a/c
|
4,375
|
|
|
|
8,125
|
|
|
8,125
|
|
|
|
|
1/1/Y3
|
Bal
b/d
|
8,125
|
|
DR
|
Income
Statement (P&L Extract)
|
CR
|
|
|
|
|
€
|
|
|
€
|
|
Yr
1
|
Depreciation
- equipment
|
3,200
|
|
|
|
|
|
Depreciation
– fixtures
|
3,750
|
|
|
|
|
|
|
|
|
|
|
|
Yr
2
|
Disposal
loss
|
2,200
|
|
|
|
|
|
Depreciation
- equipment
|
2,400
|
|
|
|
|
|
Depreciation
– fixtures
|
4,375
|
|
|
|
Statement
of financial position (Extract)
|
Non-current
assets
|
Cost
|
Accumulated
Depreciation
|
Net
Book Value
|
|
|
€
|
€
|
€
|
|
Year
1
|
|
|
|
|
Equipment
|
32,000
|
(3,200)
|
28,800
|
|
Fixtures
|
30,000
|
(3,750)
|
26,250
|
|
Year
2
|
|
|
|
|
Equipment
|
24,000
|
(4,800)
|
19,200
|
|
Fixtures
|
35,000
|
(8,125)
|
26,875
|
|