Some problem in the F3

[Acid]

Hi,

In Studytext page D4.13 Example when plant of $110,000 is sold the entry in Plant account is shown as $50000 to disposal and $60000 is balance c/f . Wouldnt it be a total of $110,000 to the disposal account? Why is the balance being carried down while the asset has been sold off!!

I also found the printing error in Test yourself 9 on page D4.14 . There are only 2 entries given while in the answer it says $70000 which is option (d) and that is not included there in the question!!

Pls. shed some light on the above.

Thanks

Acid

[Grace]

Hi Acid,

This is a mistake on our part. You are correct. It should be $110,000 instead of $50,000. Accordingly, asset disposal account will also change and the loss on disposal will come $105,000 (i.e. $80,000 related to plant & $25,000 related to vahicle.

Regarding the second problem, we need to increase the box size so that other two alternatives can also be seen.

Thanks for highlighting the mistakes.