[Leatitia]

where did you get the 5450? i get 5250

@johnmoffat said:
First question: Your answer is correct if the original cost was 5,000 (you typed 50,000).
However you must not write down the position each year in the exam – it takes far too long and is not needed. There is a lot of time pressure in the exam and you will not have time to do it.

Second question:

The t-accounts and the double entries are not at all relevant.
The carrying value was 67460

The asset sold had a carrying value of 5450 (4000 + 1250)

Therefore the carrying value after the sale is 67460 – 5450 = 62010

(I am puzzled that you have the questions but have not been able to check the answers. Are there not answers in the same book as the questions? If there are not then you should use a different book 🙂 )

[Author]

Posts