A laptop purchased 02 August 2018 at a cost of P9,500 was disposed off in January 2020 for P6800. Assuming the organization follows local GAAPS on depreciation, provide the Journal Entries for this transaction. Outline all assumptions used.

(ii) The following in being considered: Purchase of an office building worth P1M from unrestricted funding. Currently, the office building is on a 2-year lease, with rentals of BWP22,000 per month. 

Provide your recommendations to the Finance Manager. What would be the possible effect on the Financial Health of the organization if these transactions are approved

(iii) List any key financial controls for an NGO and why these are important.

(iv) Company X’s year-end is March 31. It is now April 4. A staff member asks you to process an unpaid invoice with details as follows:

The invoice is for bus transportation in the amount of P800 and is dated April 2. The invoice indicates the charges relate to transportation on March 20. A transfer is processed to pay the invoice on April 7.

How would you proceed? You may describe how you would record the transaction described above in the general ledger, including a description of journal entries and the dates each item would be recorded.

Answer rating: 100% (QA)

i The journal entry for the disposal of the laptop would be as follows Deb... View the full answer