21B ACC 102 CAS Depreciation and Control accounts Assignment Question One Banky Inc is a technology company performing rescarch for pharmaceutical companies. The finance director has contacted your financial consulting company to discuss issues relevant to the de-recognition of a non-current asset. Required: Prepare notes for your meeting with the finance director which explain and justity the accounting trcatment of these issues. Use an illustrative example of an asset that was bought during a particular financial year and sold during the year of another financial year. Question The The following is Mr Ade's Sales lodger control account for July 2020 De Cr N N Bulbid 48,020 Balbid 1,450 Credit Sales 738 430 Rctums Inwards 9,100 Cash 385.290 Discount Allowed 12.000 Rad Dcht Written On 1, ISO Contra Set of 2,090 Halld 375.170 786.400 786 450 Bal byd 375,370 Required Explain the significance of control accounts? it. Discuss one limitation of using control account What are the implications of the contra entry and the opening erectit balance in the control account above W. State and briefly explain two (2) items (relevant to sales and receivables) that should not be recorded in the Sales ledger control account 21B ACC 102 CA 5 Depreciation and Control accounts Assignment Question One Banky Inc is a technology company performing research for pharmaceutical companies. The finance director has contacted your financial consulting company to discuss issues relevant to the de-recognition of a non-current asset. Required: Prepare notes for your meeting with the finance director which explain and justify the accounting treatment of these issues. Use an illustrative example of an asset that was bought during a particular financial year and sold during the year of another financial year. Question Two The following is Mr Ade's Sales ledger control account for July 2020 Dr N Balb/d 48,020 Bal b/d Credit Sales 738,430 Returns Inwards Cash Discount Allowed Bad Debt Written Off Contra/Set off Bal c/d 786,400 Bal b/d 375,370 Cr N 1.450 9,100 385,290 12,000 1,150 2,090 375.370 786,450 Required: i Explain the significance of control accounts? ii. Discuss one limitation of using control account ill. What are the implications of the contra entry and the opening credit balance in the control account above i. State and briefly explain two (2) items (relevant to sales and receivables) that should not be recorded in the Sales ledger control account