Unit 13 Additional info and summary

Common Test

Common Test will be on 19 Aug Tuesday during lesson at the AVA. The topics covered will be everything related to Income Statement and Balance Sheet up till adjustments for accrual and prepayment of both income and expenses. Depreciation is not included. It will also include the topic of trade receivables and trade payables, the need to know ledger entries of purchases, sales, returns and trade and cash discounts and how to handle them with respect to the trade receivables and trade payables accounts (something like the SA1 question)

Discussion Question

A machine bought in 2009 was sold on 2013 at $11,000 cash. The company practices a reducing balance depreciation at 10% per annum for a full year on all assets bought on that year and no depreciation on the year of sale. Prepare the Sale of Non-current Asset account for this machine.