Question: QUESTION 3 Part A The balances on the equipment and accumulated depreciation accounts of Tomato plc at 31 December 2009 and 31 December 20X8 are

QUESTION 3 Part A The balances on the equipment and accumulated

QUESTION 3 Part A The balances on the equipment and accumulated depreciation accounts of Tomato plc at 31 December 2009 and 31 December 20X8 are as follows: 31/12/X9 31/12/X8 Equipment 640 000 600 000 Accumulated depreciation 312 000 240 000 During the year ended 31 December 20x9: Equipment costing 100 000 was purchased and paid for. Equipment was sold for 15 000 cash. Depreciation expense on equipment amounted to 120 000 Required: Prepare journal entries to record all the transactions relating to the equipment for the year ended 31 December 2009 (18 marks) Part B Using your own words, explain the importance/relevance of the following concepts to the preparation of financial statements: (a) Accruals concept (b) Duality concept (c) Prudence concept (d) Business entity concept (12 marks) (30 marks in total)

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