Hi,

I am having trouble understanding Depreciation of assets with a deposit? and the amounts that need to be calculated for the profit and loss

The question is...

Its capital cost was $25,000 and accumulated depreciation was $13,000 at date of sale. Tip: Accumulated depreciation has been provided up to the date of sale. Thus, no further depreciation is required to be recorded.

The machine was sold on credit to Jake Strong for $14,300 (including GST) with the purchaser paying a $1,000 deposit.

Balance date is 30 June 2016.

Required:

(a) Record General Journal entries to account for the sale of the finishing machine and post to the relevant ledger accounts.

(b) Transfer the profit or loss on disposal to the Profit and Loss account at 30 June.

So far I have kinda understood but I am a bit unsure if I have the calculations correctly.. I have added a photo of my currently workings...

When calculating the profit and loss amount is it the following?

25000-13000-13000=? or do i also need to include the deposit amount?