The table below provides information from the Trial Balance showing the cost and accumulated depreciation for Non-Current Assets as at 31^st December 2020

	DR	CR
Vehicles - Cost	120,000
Vehicles - Acc Dep’n as at 31st December 2020		70,000
Computer Equipment – Cost	30,000
Computer Equipment – Acc Dep’n as at 31st December 2020		18,000

a)Depreciation is up to date as of 31^st December 2020:

Vehicles – Reducing Balance 10%

Computers – Straight Line over 5 years with £2,000 Residual Value

b)On 31 December 2020, the company sold a vehicle and received £30,000 in the business bank account. The Vehicle was originally purchased on 31^st December 2018 for £40,000.

c)On 31^st December 2020, computer equipment was also sold for £5,000 to KL Ltd and the company have been given 30 days to pay. The computer equipment was original purchased on 31^st December 2017 at a cost of £8,000.

 Required

Complete the journals required to process these transactions and confirm whether a gain/loss on disposal was processed.

What is the brought forward balance of the Vehicles and Computer Equipment cost and Acc Dep’n at the year-end 31^st December 2020?

Answer rating: 100% (QA)

a Calculation of Depreciation for 2020 Vehicles Depreciation rate 10 Depreciation expense for 2020 1... View the full answer