Question 26 Not yet answered Marked out of 1.00 P Flag question 36. C5.An asset\

Question

Question 26 Not yet answered Marked out of 1.00 P Flag question 36. C5.An asset's carrying amount is RM36,000 on 1 January, Year 6. The asset is being depreciated RM500 per month using the straight- line method. Assuming the asset is sold on 1 July, Year 7 for RM25,000, the company should record Select one: O a. Neither a gain or loss is recognized on this type of transaction. O b. A loss on sale of RM2,000 O c. A gain on sale of RM1,000 O d. A loss on sale of RM 1,000 O e. A gain on sale of RM2,000,

Explanation / Answer

Answer =1) Assets Carrying value as on 1st January , year 6 = 36000 Less: Depreciation from 1st January year 6 to 1st July year 7 Total 18 Months is there , So Dpereciation = 500 X 18= 9000 Book Value as on 1st July 7th year = 27000 Less: Sale Value = 25000 Gain on the sale is = 2000 Answer = Option E = A Gain on sale of RM2,000 answer = 2) Opening Debtors = 11500 Add: Sales of the year 48000 Less: Receipt from the debtors 45000 Closing balance 14500 Answer =Option B = RM 14,500 Answer = 3) Statement of financial possttion means the revenue account , balance sheet and cash flow statement this is calculated on the basis of jounral entry and ledger balance of any organization. But this is not based on the any equation . Answer = Option C = The SOFP is based on the accounting equation.

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