QUESTION 3 All Sundry Ltd commenced business on June 1 2019 The business financial year...
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QUESTION 3 All Sundry Ltd commenced business on June 1 2019 The business financial year ends on May 31st The policy of the business is to depreciate all non current assets according to the months of ownership using the Reducing Balance Method at a rate of 20 per annum The following information was provided relating to its non current assets register over the first two financial years 2019 August 1 2019 October 1 2020 Nov 30 2021 Feb 28 2021 March 1 Bought a machine for 45 000 by cheque Bought an additional machine for 30 000 paying in cash I All Sundry Ltd traded the machine that was acquired in October 2019 for a newer model The newer model cost 36 000 and a trade in allowance of 18 700 was agreed upon All Sundry Ltd settled the balance due by cheque Sold the machine that was originally purchased on August 1 2019 for 34 130 cash Purchased a machine for 55 000 by debit card Required Prepare the following for All Sundry Ltd to reflect the two year period i Machinery Account ii Accumulated Depreciation Machinery Account iii Disposal Accounts iv separate account for each disposal Income Statement extracts 4 marks 16 marks 5 marks 2 marks
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