Balances at 1 April 20.19
	R
Equipment: Cost	28 000
Accumulated depreciation: Equipment	(26 133)

Additional information

At the beginning of the financial year, 1 April 20.19, Namgoong Plastics replaced its plastic shredding equipment with new glass recycling equipment that had a purchase price of R45 600. The replaced plastic shredding machine was the only piece of equipment in the books of Namgoong prior to the purchase of the new glass recycling equipment. Depreciation is provided at 20% p.a. on the straight-line method.

Assuming the plastic shredding equipment was sold on credit for R6 000 and at a profit of R4 133, the effect of the transaction regarding the plastic shredding equipment on the accounting equation will be ...

• A.

  Assets =		Equity +		Liabilities
  Amount	Account	Amount	Account	Amount	Account
  R		R		R
  -28 000	Equipment
  +26 133	Accumulated depreciation: Equipment
  +6 000	Trade receivables control
  -4 133	Profit on sale of asset

• B.

  Assets =		Equity +		Liabilities
  Amount	Account	Amount	Account	Amount	Account
  R		R		R
  -28 000	Equipment
  +26 133	Accumulated depreciation: Equipment	+4 133	Capital
  +6 000	Bank

• C.

  Assets =		Equity +		Liabilities
  Amount	Account	Amount	Account	Amount	Account
  R		R		R
  -28 000	Equipment
  +28 000	Accumulated depreciation: Equipment
  +4 133	Bank	+4 133	Profit on sale of asset

• D.

  Assets =		Equity +		Liabilities
  Amount	Account	Amount	Account	Amount	Account
  R		R		R
  -28 000	Equipment	+4 133	Profit on sale of asset	-6 000	Trade payables control
  +26 133	Accumulated depreciation: Equipment

• E.

  Assets =		Equity +		Liabilities
  Amount	Account	Amount	Account	Amount	Account
  R		R		R
  -28 000	Equipment
  +26 133	Accumulated depreciation: Equipment	+4 133	Profit on sale of asset
  +6 000	Trade receivables control