Solve the first task, with explanation Transcribed Image Text: 1. The following items have been extracted from the accounts of a company for the 31

Solve the first task, with explanation Transcribed Image Text: 1. The following items have been extracted from the accounts of a company for the
31 December 2020:
ended
year
Depreciation charge
Profit on sale of tangible non-current assets 5.000
2$
30,000
Proceeds from sale of tangible non-current assets 20000
Purchase of tangible non-current assets
25,000
If the carrying amount of tangible non-current assets was $110,000 on 31
December 2019, what was it on 31 December 2020?
2. On I January 2020 a company had plant and equipment with a cost of $150.000 and
accumulated depreciation thereon of $60,000. During the year ended 31 December 2020 the
cost of plant additions was $30,000 and plant was disposed of with a cost of $20,000 for
$18.000. This plant was bought on 30 September 2018.
The depreciation policy is to make an allowance of 25% per annum on the declining balance
with a full charge in the year of acquisition and none in the vear of disposal.
What is the depreciation charge for the vear ended 31 December 2020?
3. Frederick. a wholesaler, has the following information relating to the year ended 31 March
2020
(a)
Sales are made on both cash and credit terms.
(b)
At 1 April 2019 trade receivable were $40.000 and the receivables loss allowance was
7.5% of this amount.
(c)
Included in opening receivable was an amount of $4.000 relating to Lean which went
into liquidation on 2 January 2020
(d)
Credit sales during the vear were $195.600 and cash sales $87.800.
(e)
Cash received from trade receivables amounted to $192.300.
(1)
Apart from Lean’s debt. $3.200 of other debts were found to be irrecoverable during
the year.
(g)
The receivables loss allowance at the end of the year is to be 7.5% of year end trade
receivables.
Required:
Write
the ledger accounts for the above transactions.
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