As the bookkeeper of Abdulla Ltd, you are completing the accounts for the year ended 30...

  

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As the bookkeeper of Abdulla Ltd, you are completing the accounts for the year ended 30 April 2021. On 23 April 2021, Abdulla Ltd sold some equipment for £27 500 for which they received a cheque. The original cost of the equipment was £67 500 when purchased on 1 May 2017. You are yet to record the disposal in the accounts. Additional information: Abdulla Ltd has a policy of depreciating equipment using the reducing balance method at a rate of33% per annum. A full year's depreciation is charged in the year of purchase and none in the year of disposal. Required: Prepare the equipment disposal account. Clearly show the amount to be transferred to the income statement. Dates are not required. As the bookkeeper of Abdulla Ltd, you are completing the accounts for the year ended 30 April 2021. On 23 April 2021, Abdulla Ltd sold some equipment for £27 500 for which they received a cheque. The original cost of the equipment was £67 500 when purchased on 1 May 2017. You are yet to record the disposal in the accounts. Additional information: Abdulla Ltd has a policy of depreciating equipment using the reducing balance method at a rate of33% per annum. A full year's depreciation is charged in the year of purchase and none in the year of disposal. Required: Prepare the equipment disposal account. Clearly show the amount to be transferred to the income statement. Dates are not required.

Answer rating: 100% (QA)

Equipment Disposal Account Equipment Original Cost 67500 Euros Accumul... View the full answer