Question 2

Question 1

Balance c/d or profit or loss account

Depreciation Charges
Accumulated deprecation
VAT Control Account

Answer 1

Depreciation Charges - profit or loss account

Accumulated deprecation - Balance c/d

VAT Control Account - Balance c/d

Question 2

VAT Control account when purchasing goods when the business is VAT registered - what do you debit? what do you credit?

Answer 2

Debit - VAT Control account

Credit - Bank

Question 3

Formula for disposal

Answer 3

Sale proceeds - carrying amount

Question 4

T account for disposal account of part exchange

Answer 4

DEBIT
Machinery at cost (Old machinery)

CREDIT
Accumulated depreciation
machine at cost (part exchange)

Profit or loss for whichever side is lower

Question 5

T account for machinery at cost with part exchange

Answer 5

DEBIT
dispoals (part exchange)
bank

CREDIT
Disposals

Question 6

Recording part exchange

Answer 6

Debit Machinery at cost

Credit disposals