The following information was extracted from the accounting records of Namgoong Plastics: Balances at 1 April...
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The following information was extracted from the accounting records of Namgoong Plastics: Balances at 1 April 2019 R Equipment: cost R28 000 Accumulated depreciation: Equipment R(26 133) Additional information At the beginning of the financial year, 1 April 2019, Namgoong Plastics replaced its plastic shredding equipment with new glass recycling equipment that had a purchase price of R45 600 The replaced plastic shredding machine was sold for R5 000 cash, it was the only piece of equipment in the books of Namgoong prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20% p.a. on the straight4ine method. Assuming the plastic shredding equipment was sold on credit for R6 000 and at a profit of R4 133, the effect of the transaction on the accounting equation will be: The following information was extracted from the accounting records of Namgoong Plastics: Balances at 1 April 2019 R Equipment: cost R28 000 Accumulated depreciation: Equipment R(26 133) Additional information At the beginning of the financial year, 1 April 2019, Namgoong Plastics replaced its plastic shredding equipment with new glass recycling equipment that had a purchase price of R45 600 The replaced plastic shredding machine was sold for R5 000 cash, it was the only piece of equipment in the books of Namgoong prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20% p.a. on the straight4ine method. Assuming the plastic shredding equipment was sold on credit for R6 000 and at a profit of R4 133, the effect of the transaction on the accounting equation will be:
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To analyze the effect of the transaction on the accounting equation we need to consider the changes in the assets liabilities and equity The accountin... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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