Trying to prepare an Income statement and balance sheet.
The trial balance shows that there is a suspense account for £18,000 (on the credit side)
My question is:
On further investigation of the suspense account it was discovered that a cash receipt of £18,000 had been posted to the suspense account. This represents the proceeds from the disposal of a piece of equipment that had been bought exactly two and half years ago at a cost of £22,000. The equipment was sold on the last day of the financial year.
How do i work this out? Many thanks
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