on 7 February 2023 the following balances, among others appeared on the books of UrbanSpace Lodge.

Generator ( cost) 870 000

Accumulated depreciation on the generator: 600 000

2. On 31 July 2022 an old generator that originally cost 270 000 was sold on credit to a debtor for 71 000. The accumulated depreciation on the vehicle sold amounted to 180 000 on 1 February 2022. depreciation is calculated at 20% per annually using the diminishing balance method. The financial year ends on 31 January 2023.

3. On 1 August 2022 a new generator was bought for 300 000.

with the above information you are required to answer the following questions:

prepare the following accounts in the general ledger, showing all the entries up to 31 January 2023:

a) accumulated depreciation on generators (balance the account)

b) Fixed asset Realisation ( close of the account)

2 calculate the profit and loss on the sold generator.

In addition calculate the depreciation on the remaining generators as at 31 January 2023.