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Question 2. Use the G eneral Journal provided to record all the necessary entries for the disposal of the asset using double entry rules :
Question 2. Use the General Journal provided to record all the necessary entries for the disposal of the asset using double entry rules:
Wildfire Traders sold office equipment on 31/10/18 for $6,600 cash (inc. GST). Details relating to the equipment sold are as follows:
- Date purchased: 1/7/14
- Original cost (ex. GST) $9,000
- Useful life 10 years
- Residual value Nil
- Depreciation rate: 10% - Straight-line
- Depreciation has been calculated and recorded in the accounting records on 30th June each year and was last recorded on 30/6/18.
Required:
Prepare all general journal entries necessary to record the disposal of the asset.
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