|
|
Solution 9.7
|
DR |
Office
Equipment Account |
CR |
|
|
|
€ |
|
|
€ |
|
1/1/02 |
Bal b/d |
100,000 |
|
|
|
|
2002 |
Bank a/c |
25,000 |
|
|
|
|
2002 |
Bank a/c |
35,000 |
31/12/02 |
Bal c/d |
160,000 |
|
|
|
160,000 |
|
|
160,000 |
|
1/1/03 |
Bal b/d |
160,000 |
|
|
|
|
DR |
Provision for
Depreciation of Equipment Account |
CR |
|
|
|
€ |
|
|
€ |
|
|
|
|
1/1/02 |
Bal b/d |
50,000 |
|
31/12/02 |
Bal c/d |
82,000 |
31/12/02 |
P
& L a/c |
32,000 |
|
|
|
82,000 |
|
|
82,000 |
|
|
|
|
1/1/03 |
Bal b/d |
82,000 |
Annual depreciation
is €160,000 x 20% = €32,000
|
|
DR |
Profit & Loss Account(Extract) |
CR |
|
|
|
€ |
|
|
€ |
|
31/12/02 |
Depreciation
|
32,000 |
|
|
|
Balance Sheet(Extract)
|
|
Cost
|
Accumulated
Depreciation |
Net Book Value |
|
|
€ |
€ |
€ |
|
Office equipment |
160,000 |
(82,000) |
78,000 |
|
|
|
|
|
|
|