Question

7. Fill in the blanks against the question marks, below. Samir LLC presents the following information on the sale of an asset. (Marks Allotted: 3 This transaction took place on June 1, 2019. Cost of office furniture Less: Accumulated depreciation ($41,000+ $8,000) Book value at date of disposal Proceeds from sale Gain on disposal of plant asset $60,000 49,000 11,000 16,000 $ 5,000 Mr. Samir, an accountant, working for the company passed the journal entry for the above transaction but, unfortunately, he forgot to enter the amount against each column As a qualified accountant, you are required to complete the blank columns with the correct amounts. January 1, 2019 Cash A/c Dr. Accumulated Depreciation A/c Dr. To Office Furniture A/c To Gain on Disposal of Plant A/c (Being assets sold at a gain)

Answer 1

Account titles and Explanation	Debit	Credit
Cash                                                      [Proceed from the sale]	$16,000
Accumulated depreciation	$49,000
To office furniture                            [Cost of the asset]		$60,000
To Gain on disposal of Plant		$5,000
(Being assets sold at a gain)