You spent $2750 incl. GST on a computer at Digi-Com and paid for it from your bank account. You estimate it will have a useful life of 3 years and be worth $513.45 at the end of the 3 years. Computer is depreciated using the diminishing balance method and the rate of depreciation is 41%. Record the purchase of the computer on this date.

You transferred surplus cash out of the bank account to an investment account. You realised that you don't need all your capital sitting in the low interest working bank account so have transferred $50,000 into a higher interest-bearing account. Record this movement in a journal entry. This account will pay you 2.5% interest per annum, credited monthly on the 6 of each month into your account

You sold 20 Pen and 30 Pencils to Baby Essentials on account, term 2/8, n/30

Buy Sell

pen 429.50 $859.00

pencils 599.50 $1,199.00

Journal entries