Question $1\mathrm{.}3.$

REQUIRED

a$.$ Record the sale of the asset on $30$ April $20\mathrm{.}3$ for Bambl Traders in the general journal.

b$.$ Prepare the asset reallsation and the accumulated depreciation on furniture accounts in the general ledger of Bambi Traders.

INFORMATION

On $30$ Aprll $20\mathrm{.}3$ Bambl Traders decided to sell all its furmiture on credit to A$.$ Maxwell for R$50000.$ This furniture was acquired on $1$ Jariuary $20\mathrm{.}1$ for R$75000.$ The financial year ends on $31$ December.

Depreclation is provided annually according to the diminishing balance method at $20\%$ per annum. Depreciation for the current financial year has not yet been recorded.

SOLUTION

Bambi Traders

General Journal for April $20\mathrm{.}3$

$\backslash$table$[[$Day$,$Detalls,$\backslash$table$[[$Debit$],[$R$]],\backslash$table$[[$Credit$],[$R$]]],[30,\backslash$table$[[$Asset reallsation$],[$Furniture$],[$Transfer of the cost of the asset.$]],75000,75000],[\backslash$table$[[$Depreclation$],[$Accumulated depreclation on furniture$],[$Recording of depreciation for the current year.$]],3200,3200],[\backslash$table$[[$Accumulated depreciation on furniture$],[$Asset realisation$],[$Transfer accumulated depreclation.$]],30200,30200],[\backslash$table$[[$Debtors control $/$ A$.$ Maxwell$],[$Asset realisation$],[$Becord sale of asset on credit.$]],50000,50000],[\backslash$table$[[$Asset realisation$],[$Profit on sale of the furniture$],[$Profit on sale of the furniture.$]],5200,5200]]$

Bambi Traders

General ledger

Accumulated depreclation on furniture

N$12$

$\backslash$table$[[,,,$R$,,,,$R$],[20\mathrm{.}3,,,,203,,,],[$Apr$30,$Asset reallsation,GJ$,30200,$Jan $1,$Balance,b$/$d$,{27000}^7$