Question 7

(a)  The Cash Book and Bank Statement of Carl Joone for the month of March 2002 are shown below:

(i) Update the Cash Book of Carl Joone.

(ii) Prepare the Bank Reconciliation Statement starting with the Bank Statement balance and ending with the cash Book balance.

(b)  A Business bought fixtures costing $ 448,000 on January 1 2005. The Life expectancy of the asset is 7 years. The estimated disposal value is $ $48,006.The financial year of the business ends on December 31 each year.

(i)   Use the formula for depreciation calculation on the ‘Straight Line Method’  to calculate the annual depreciation on the fixtures.

(ii)    Enter up the accumulated depreciation account for fixtures for the first three years.

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