Double entry 2 Flashcards
What is the double entry for recording annual depreciation using the straight-line method for equipment purchased for £100,000 with a useful life of 10 years and no residual value?
Dr Depreciation Expense £10,000 Cr Accumulated Depreciation £10,000
What is the double entry for recording annual depreciation after revaluing equipment upwards by £20,000 at the end of year 5?
Dr Depreciation Expense £12,000 Cr Accumulated Depreciation £12,000
What is the double entry for recording depreciation at the end of the first year using the reducing balance method at a rate of 20% for equipment costing £50,000?
Dr Depreciation Expense £10,000 Cr Accumulated Depreciation £10,000
What is the double entry for recording accumulated depreciation of £30,000 on equipment being disposed of for £10,000?
Dr Accumulated Depreciation £30,000 Cr Equipment £30,000
Also record the disposal separately.
What is the double entry for the first year under the new depreciation method after changing from straight-line to reducing balance for an asset with a book value of £60,000 and a new rate of 25%?
Dr Depreciation Expense £15,000 Cr Accumulated Depreciation £15,000
What is the double entry for recording an impairment of an asset with a book value of £40,000 impaired by £10,000 and subsequent depreciation?
Dr Impairment Loss £10,000 Cr Accumulated Impairment £10,000 Dr Depreciation Expense (following impairment) £3,000 Cr Accumulated Depreciation £3,000
What is the double entry for recording a depreciation expense of £5,000 on a fully depreciated asset that is still in use?
Dr Depreciation Expense £5,000 Cr Accumulated Depreciation £5,000
What is the double entry for depreciation at the end of the first half-year for an asset purchased on 1st July for £80,000 with straight-line depreciation over 4 years?
Dr Depreciation Expense £10,000 Cr Accumulated Depreciation £10,000
What is the double entry for reversing a previously recorded depreciation expense of £8,000 due to an error?
Dr Accumulated Depreciation £8,000 Cr Depreciation Expense £8,000
What is the double entry for a business revaluing an asset downwards by £15,000 and then recording the next year’s depreciation?
Dr Revaluation Surplus £15,000 Cr Asset £15,000 Dr Depreciation Expense £X Cr Accumulated Depreciation £X
What is the double entry for reclassifying a building as held for sale with a carrying amount of £150,000 and fair value less costs to sell of £140,000?
Dr Asset Held for Sale £140,000 Dr Impairment Loss £10,000 Cr Building £150,000
What is the double entry for revaluing an asset held for sale upwards by £5,000, previously written down by £10,000?
Dr Asset Held for Sale £5,000 Cr Reversal of Impairment £5,000
What is the double entry for selling an asset classified as held for sale for £50,000, which had a carrying amount of £45,000?
Dr Cash £50,000 Cr Asset Held for Sale £45,000 Cr Gain on Sale £5,000
What is the double entry for transferring an asset from property, plant and equipment to assets held for sale with a carrying amount of £200,000 and fair value less costs to sell of £180,000?
Dr Asset Held for Sale £180,000 Dr Impairment Loss £20,000 Cr Property, Plant and Equipment £200,000
What is the double entry for an asset held for sale increasing in fair value by £3,000, reversing a previous impairment loss?
Dr Asset Held for Sale £3,000 Cr Reversal of Impairment £3,000
What is the double entry for reclassifying a previously unsellable asset back to property, plant and equipment at its carrying amount of £120,000?
Dr Property, Plant and Equipment £120,000 Cr Asset Held for Sale £120,000
What is the double entry for classifying a piece of land as held for sale with a carrying amount of £100,000 and fair value less costs to sell of £95,000?
Dr Asset Held for Sale £95,000 Dr Impairment Loss £5,000 Cr Land £100,000
What is the double entry for reclassifying a financial asset as held for sale with a carrying amount of £60,000 and a fair value less costs to sell of £58,000?
Dr Asset Held for Sale £58,000 Dr Impairment Loss £2,000 Cr Financial Asset £60,000
What is the double entry for selling an asset held for sale at a loss of £5,000 from its carrying amount of £35,000?
Dr Cash £30,000 Dr Loss on Sale £5,000 Cr Asset Held for Sale £35,000
What is the double entry for recording an increase in the carrying amount of an asset held for sale due to a revaluation of £7,000?
Dr Asset Held for Sale £7,000 Cr Revaluation Surplus £7,000
What is the double entry for recording the cost of goods sold using FIFO for inventory purchased 100 units at £10 each and 200 units at £12 each, selling 150 units?
Dr Cost of Goods Sold £1,500 Cr Inventory £1,500
What is the double entry for recording the cost of goods sold under the weighted average method with an opening inventory of 50 units at £8 each, purchasing 100 units at £10 each and selling 80 units?
Dr Cost of Goods Sold £800 Cr Inventory £800
What is the double entry for recording a write-down of inventory by £5,000 due to obsolescence?
Dr Inventory Write-Down Expense £5,000 Cr Inventory £5,000
What is the double entry for recording the cost of goods sold using LIFO for inventory with 500 units at £15 each, purchasing 300 units at £18 each, and selling 400 units?
Dr Cost of Goods Sold £7,200 Cr Inventory £7,200
What is the double entry for reversing a previous inventory write-down of £1,200 when the inventory’s value recovers?
Dr Inventory £1,200 Cr Inventory Write-Down Expense £1,200
What is the double entry for writing off lost inventory worth £2,000?
Dr Inventory Write-Off Expense £2,000
What is the double entry for inventory transactions under the perpetual inventory system when purchasing 200 units at £25 each and selling 150 units?
Dr Inventory £5,000 Cr Accounts Payable £5,000 (For the purchase)
Dr Cost of Goods Sold £3,750 Cr Inventory £3,750 (For the sale)
What is the double entry for recognizing a provision for inventory obsolescence of £800?
Dr Inventory Obsolescence Expense £800 Cr Allowance for Inventory Obsolescence £800
