[allyatheaccount]

This is how I answer it:
by creating T account
Sale Revenue Cr $10m – Dr $10m
Asset Plant Dr $10
Disposal account Cr 10m

Proceeds from the sale – Net Book Value of Asset= Gain or loss
$10,000m – ( $88,600m – $33,400) = $45,200 loss

In the SOFP
Plant ($88,600m – $33,400m) = $55,200m

In the SOCI
Revenue less ( $10,000)
Other Comprehensive Income
loss on Disposal $45,200M

[allyatheaccount]

I have a question can help me,
On 1 July 2016 an item of plant was disposed of for $10m cash. The proceeds have been treated as sales revenue. The plant is still included in the above trial balance with at its opening cost of $28m and accumulated depreciation of $20m.

T.B
Plant and equipment -at cost $88,600m
Plant and equipment accumulation depreciation at 1 January 2016 $33,400m

[allyatheaccount]

This is how I answer it:
2year service support 100%@$1m = $2m
$12m-$2m= $10m Sale
by creating T account
Suspense Cr. 12000m – Dr. 12000m =cancel
Bank Dr. 12000m – Cr 2000m= 10000M
Sale and Service Support Cr. 12000m – Dr.2000m

In the SOCI
Other Income Service support 2000m
In the SOFP
Current Asset
Bank 1300m+10700m – 2000m there was a error of entry

[allyatheaccount]

I have a question:
The suspense account exist because the accounting trainee was not sure about the posting for a sale and service support of $12m on 1 April 2016. Therefore an entry for the $12m cash received was posted only in the cash account at that date.
For this sale, a key customer negotiated a sale and support services agreement with Butcher Buck Limited. The terns of this agreement was for the sale of the product plus ongoing service support for a period of two years from the date of sale. the annual cost of this support is $1m and the normal mark up on this support100%. Ignore the time value of money.

T.B
Bank Dr 1,300
Suspense account Cr 1,2000

[allyatheaccount]

Have a question that I will like help with:
Non-current assets: tangible
The Investment property was acquired on 1 January 2010. The company’s policy is to revalue investment property at each year end and at 31 December 2016 it was valued at $61.5 million. Ignore deferred tax on the revaluation.

On 1 July 2016 an item of plant was disposed of for $10 million cash. The proceeds have been treated as sales revenue. The plant is still included in the above trial balance with at its opening cost of $28 million and accumulated depreciation of $20 million.

T.B
Investment property-at valuation 1 January 2016 Dr 58,700million
Plant and equipment-at cost Dr 88,600 million
Plant and Equipment accumulated depreciation at 1 January 2016 Dr 33,400 million

[allyatheaccount]

This is how I answer it.
23500-2000=21500
6years a year was paid so. 5year *10%=50%
21500*50%=10750
10750+21500=32250
Dr financial cost 32250
Cr. Obligation 32250
Please tell me where I when wrong

[allyatheaccount]

I have a question. On preference shares it reads: the preference shares were issued on the 1 January 2010 at par. They are redeemable at a large premium which is gives them an effective interest rate of 10 percent per annum. The trial balance reading date is 31 December 2016 with a paid preference dividend of 2000 and a 6 percent redeemable preference shares of $1 each 23500.

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