Term 1 Journal Entries

Question 1

Purchase Asset/Capital Expense

Answer 1

Machine A DR
GST Clearing DR
Cash at Bank/Credit CR

Question 2

Revenue Expense

Answer 2

Machinery Expense DR
GST Clearing DR
Cash at Bank/Credit CR

Question 3

Depreciation

Answer 3

Depreciation DR

Acc Depreciation CR

Question 4

Closing Entry

Answer 4

Profit and Loss DR
Depreciation CR
Machinery Expense (If there is) CR

Question 5

Step 1 Disposal

Answer 5

Depreciation

Depreciation DR
Acc Depreciation CR

Question 6

Step 2 Disposal

Answer 6

Transfer Original Worth of Asset to Disposal Account

Disposal DR
Machinery CR

Question 7

Step 3 Disposal

Answer 7

Transfer Accumulated Depreciation to Disposal Account

Accumulated Depreciation DR
Disposal CR

Question 8

Step 4 Disposal

Answer 8

Sell the Asset

Bank DR
GST Clearing CR
Disposal CR

Question 9

Step 5 Disposal (Loss)

Answer 9

Record Loss on asset

Loss on Disposal DR
Disposal CR

Question 10

Step 5 Disposal (Gain)

Answer 10

Record Profit on Asset

Disposal DR
Loss on Disposal CR