Page 234 - Accountancy_F5

Solution 7.13
The question is silent on timing of depreciation charge; hence it is pro-rated accordingly.
The journal entries will appear as follows:

Jitegemee company journal entries
Debit Credit
FOR ONLINE READING ONLY
Date Description Folio TZS TZS

“000” “000”
LANGUAGE EDITING
July 4, 2019 Machinery account 15,000
Cash account 15,000
LANGUAGE EDITING
To record acquisition of ma-
chinery for cash
Dec. 31, 2019 Depreciation expenses 1,500

Accumulated depreciation 1,500
To record depreciation for half
year
Dec. 31, 2020 Depreciation expenses 3,000

Accumulated depreciation 3,000
To record depreciation for the
year
April 1, 2022 Depreciation expenses 750
Accumulated depreciation 750

To record depreciation for
three months.
April 1, 2022 Cash account 5,500
Accumulated depreciation 8,250
Disposal of machinery 13,750

To record receipt of proceeds
and closing off accumulated
depreciation for the disposed
machinery.

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