provision for assets

leung

2011-07-25 5:13 am

姐係咁我做緊條練習佢就太約咁樣 (我會提供部份我唔識做既內容)
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furnitiure at cost 8000
provision for depreciation of motor vans 6000
Motor vans at cost 27000
Provision for depreciation on furniture 2400
long term investments at cost 24000
Interest received on investments 1900

note (1) the motor vans are to be depreciated at the rate of 20% on cost and furniture at 10% on cost
(2)Interest on investments due but not yet received amounted to $600.
跟住就叫你prepare P&L and balance sheet
問題黎啦

上面佢有

provision for depreciation of motor vans 6000 但係note 又叫我計 20% rate

咁樣我係p&L 同 balance sheet 點計 ??

仲有 note 2 佢話有600 not yet received 咁係唔係要將600 放係balabce sheet 到當interest payable?? 得番1300 又放係p&l 既other incomes?

回答 (1)

Acct

2011-07-25 6:17 am

✔ 最佳答案

Q1
You are required to make provision of $5400 (27000 x 20%) as depreciation for this year. Accounting entry is as follows:
Dr. Depreciation of motor car $5,400
Cr. Provision for Depreciation of motor car $5400

Hence, Provision for Depreciation of motor car in the balance sheet is 11,400 (6000 +5400)

Q2
As part of interest $600 is not received,the accounting entry is as below:
Dr. Interest Receivable (not payable)$600
Cr. Interest Income$600
Total interest income is 600 + 1900 (interest received on investments) = 2500.

Interest Receivable $600 is shown in the balance sheet.

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