PART D: RECORDING TRANSACTIONS AND EVENTS
Study Guide
D
Recording transactions and events
4
Tangible non-current assets
(a)
Define non-current assets.
K
(b)
Recognise the difference between current and non-current
assets.
K
(c)
Explain the difference between capital and revenue items.
K
(d)
Classify expenditure as capital or revenue expenditure.
S
(e)
Prepare ledger entries to record the acquisition and disposal
of non-current assets.
S
(f)
Calculate and record profits or losses on disposal of noncurrent assets in the statement of profit or loss, including
part-exchange transactions.
S
(g) Record the revaluation of a non-current asset in ledger
accounts, the statement of profit or loss and other
comprehensive income and in the statement of financial
position.
S
(h)
Calculate the profit or loss on disposal of a revalued asset.
S
(i)
Illustrate how non-current asset balances and movements
are disclosed in financial statements.
S
(j)
Explain the purpose and function of an asset register.
K
5
Depreciation
(a)
Understand and explain the purpose of depreciation.
K
(b)
Calculate the charge for depreciation using straight line and
reducing balance methods.
S
(c)
Identify the circumstances where different methods of
depreciation would be appropriate.
S
(d)
Illustrate how depreciation expense and accumulated
depreciation are recorded in ledger accounts.
S
(e)
Calculate depreciation on a revalued non-current asset,
including the transfer of excess depreciation between the
revaluation surplus and retained earnings.
S
(f)
Calculate the adjustments to depreciation necessary if
changes are made in the estimated useful life and/or residual
value of a non-current asset.
S
(g) Record depreciation in the statement of profit or loss and
statement of financial position.
F
Preparing basic financial statements
3
Disclosure notes
(b)
Draft the following disclosure notes:
(i) Non-current assets including tangible and intangible assets
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Intellectual level
S
S
PART D: RECORDING TRANSACTIONS AND EVENTS
asset, will flow to the enterprise. All other subsequent expenditure is simply recognised as an expense in
the period in which it is incurred.
The important point here is whether any subsequent expenditure on an asset improves the condition of
the asset beyond the previous performance. The following are examples of such improvements.
(a)
(b)
(c)
Modification of an item of plant to extend its useful life, including increased capacity
Upgrade of machine parts to improve the quality of output
Adoption of a new production process leading to large reductions in operating costs
Normal repairs and maintenance on property, plant and equipment items merely maintain or restore
value; they do not improve or increase it, so such costs are recognised as an expense when incurred.
4
Depreciation accounting
The cost of a non-current asset, less its estimated residual value, is allocated fairly between accounting
periods by means of depreciation. Depreciation is both of the following.


Charged against profit
Deducted from the value of the non-current asset in the statement of financial position
Two methods of depreciation are specified in your syllabus.


The straight line method
The reducing balance method
4.1 What is depreciation?
The need to depreciate non-current assets arises from the accruals assumption. If money is expended in
purchasing an asset then the amount expended must at some time be charged against profits. If the
asset consumes economic benefits over a number of accounting periods it would be inappropriate to
charge any single period (eg the period in which the asset was acquired) with the whole of the
expenditure. Instead, some method must be found of spreading the cost of the asset over its useful life.
This view of depreciation as a process of allocation of the cost of an asset over several accounting
periods is the view adopted by IAS 16. It is worth mentioning here two common misconceptions about
the purpose and effects of depreciation.
(a)
It is sometimes thought that the carrying amount of an asset is equal to its net realisable value (ie
the amount the asset could be sold for less the selling costs) and that the reason for charging
depreciation is to reflect the fall in value of an asset over its life. This misconception is the basis
of a common, but incorrect, argument which says that freehold properties (say) need not be
depreciated in times when property values are rising. It is true that historical cost often gives a
misleading impression when a property's carrying amount is much below its market value, but in
such a case the business can choose to revalue the property. This is a separate problem from
that of allocating the property's cost over successive accounting periods.
(b)
Another misconception is that depreciation is provided so that an asset can be replaced at the
end of its useful life. This is not the case.
(i)
If there is no intention of replacing the asset, it could then be argued that there is no need
to provide for any depreciation at all.
(ii)
If prices are rising, the replacement cost of the asset will exceed the amount of
depreciation provided.
4.2 Requirements of IAS 16 for depreciation
Depreciation accounting is governed by IAS 16. Below are some of the important definitions you need to
be aware of.
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TANGIBLE NON-CURRENT ASSETS
Depreciation is the allocation of the depreciable amount of an asset over its estimated useful life.
Depreciation for the accounting period is charged to net profit or loss for the period either directly
or indirectly.
Depreciable assets are assets which:
–
Are expected to be used during more than one accounting period
–
Have a limited useful life
–
Are held by an enterprise for use in the production or supply of goods and service, for
rental to others, or for administrative purposes
Depreciable amount of a depreciable asset is the historical cost or other amount substituted for
historical cost in the financial statements, less the estimated residual value.
(IAS 16)
An 'amount substituted for historical cost' will normally be a current market value after a revaluation has
taken place.
4.3 Useful life
IAS 16 requires the depreciable amount to be allocated on a systematic basis to each accounting period
during the useful life of the asset.
Useful life is either:


The period over which a depreciable asset is expected to be used by the enterprise; or
The number of production or similar units expected to be obtained from the asset by the
enterprise.
(IAS 16)
The following factors should be considered when estimating the useful life of a depreciable asset.



Expected physical wear and tear
Obsolescence
Legal or other limits on the use of the assets
Once decided, the useful life should be reviewed at least annually and depreciation rates adjusted for
the current and future periods if expectations vary significantly from the original estimates. The effect of
the change should be disclosed in the accounting period in which the change takes place.
The assessment of useful life requires judgement based on previous experience with similar assets or
classes of asset. When a completely new type of asset is acquired (ie through technological
advancement or through use in producing a brand new product or service) it is still necessary to
estimate useful life, even though the exercise will be much more difficult.
IAS 16 also points out that the physical life of the asset might be longer than its useful life to the
enterprise in question. One of the main factors to be taken into consideration is the physical wear and
tear the asset is likely to endure. This will depend on various circumstances, including the number of
shifts for which the asset will be used and the enterprise's repair and maintenance programme. Other
factors to be considered include obsolescence (due to technological advances/improvements in
production/reduction in demand for the product/service produced by the asset) and legal restrictions, eg
length of a related lease.
4.4 Residual value
The residual value is the net amount which the entity expects to obtain for an asset at the end of its
useful life after deducting the expected costs of disposal.
In most cases the residual value of an asset is likely to be immaterial. If it is likely to be of any
significant value, that value must be estimated at the date of purchase or any subsequent revaluation.
The amount of residual value should be estimated based on the current situation with other similar
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PART D: RECORDING TRANSACTIONS AND EVENTS
assets, used in the same way, which are now at the end of their useful lives. Any expected costs of
disposal should be offset against the gross residual value. For example:
(a)
(b)
A non-current asset costing $20,000 which has an expected life of 5 years and an expected
residual value of nil should be depreciated by $20,000 in total over the 5 year period.
A non-current asset costing $20,000 which has an expected life of 5 years and an expected
residual value of $3,000 should be depreciated by $17,000 in total over the 5 year period.
4.5 Depreciation methods
Depreciation is a means of spreading the cost of a non-current asset over its useful life in order to match
the cost of the asset with the consumption of the asset’s economic benefits.
So for each accounting period, depreciation is charged to the statement of profit or loss and also
deducted from the non-current asset balance to give the asset's carrying amount.
The amount of depreciation deducted from the cost of a non-current asset to arrive at its carrying
amount will accumulate over time, as more depreciation is charged in each successive accounting
period.
For example, if a non-current asset costing $40,000 has an expected life of 4 years and an estimated
residual value of nil, it might be depreciated by $10,000 per annum.
At beginning of its life
Year 1
Year 2
Year 3
Year 4
Depreciation
charge for the
year (statement
of profit or loss)
(A)
$
–
10,000
10,000
10,000
10,000
40,000
Accumulated
depreciation
at end of year
(B)
$
–
10,000
20,000
30,000
40,000
Cost of the
asset
(C)
$
40,000
40,000
40,000
40,000
40,000
Carrying
amount at end
of year
(C – B)
$
40,000
30,000
20,000
10,000
0
At the end of year 4, the full $40,000 of depreciation charges have been made in the statements of
profit or loss of the four years. The carrying amount of the non-current asset is now nil. In theory
(although perhaps not in practice) the business will no longer use the non-current asset, which now
needs replacing.
There are several different methods of depreciation. For your syllabus, you only need to know about the
straight line and the reducing balance methods.
4.6 The straight line method
This is the most commonly used method of all. The total depreciable amount is charged in equal
instalments to each accounting period over the expected useful life of the asset. In this way, the carrying
amount of the non-current asset declines at a steady rate, or in a 'straight line' over time.
The annual depreciation charge is calculated as:
Cost of asset – residual value
Expected useful life of the asset
4.7 Example: straight line depreciation
(a)
A non-current asset costing $20,000 with an estimated life of 10 years and no residual value
would be depreciated at the rate of:
$20,000
= $2,000 per annum
10 years
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TANGIBLE NON-CURRENT ASSETS
A non-current asset costing $60,000 has an estimated life of 5 years and a residual value of
$7,000. The annual depreciation charge using the straight line method would be:
$(60,000 – 7,000)
= $10,600 per annum
5 years
The carrying amount of the non-current asset would be:
Cost of the asset
Accumulated depreciation
Carrying amount
After 1
year
$
60,000
10,600
49,400
After 2
years
$
60,000
21,200
38,800
After 3
years
$
60,000
31,800
28,200
After 4
years
$
60,000
42,400
17,600
After 5
years
$
60,000
53,000
7,000*
* ie its estimated residual value
Since the depreciation charge per annum is the same amount every year with the straight line method, it
is often convenient to state that depreciation is charged at the rate of x% per annum on the cost of the
asset. So for example, a non-current asset costing $20,000 with an expected residual value of nil and
an expected useful life of 10 years would be depreciated on a straight line basis at $20,000/10 =
$2,000 per year. This is the same as saying 'the depreciation charge per annum is 10% of cost' (ie 10%
of $20,000 = $2,000).
EXAM FOCUS POINT
Examination questions often describe straight line depreciation in this way.
The straight line method of depreciation is a fair allocation of the total depreciable amount between the
different accounting periods, provided that it is reasonable to assume that the business enjoys equal
benefits from the use of the asset in every period throughout its life. An example of this could be
shelving (fixtures and fittings) in the accounts department.
4.8 Assets acquired part-way through an accounting period
A business can purchase new non-current assets at any time during the course of an accounting period.
It is reasonable to charge an amount for depreciation only from the date that the business has owned
the asset, which might be part-way through an accounting period.
4.9 Example: assets acquired part-way through an accounting period
A business which has an accounting year that runs from 1 January to 31 December purchases a new
non-current asset on 1 April 20X1, at a cost of $24,000. The expected life of the asset is 4 years, and
its residual value is nil. What should the depreciation charge for 20X1 be?
Solution
The annual depreciation charge will be
$24,000
= $6,000 per annum
4 years
However, since the asset was acquired on 1 April 20X1, the business has only benefited from the use of
the asset for 9 months instead of a full 12 months. It would therefore seem fair to charge depreciation in
20X1 of only:
9
× $6,000 = $4,500
12
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PART D: RECORDING TRANSACTIONS AND EVENTS
EXAM FOCUS POINT
If an exam question gives you the purchase date of a non-current asset which is part-way through an
accounting period, you should generally assume that depreciation should be calculated in this way as a
'part-year' amount, unless the question states otherwise.
In practice, many businesses take a simplified approach where an asset has been purchased part-way
through an accounting period. Instead of calculating the depreciation from the date the asset is
acquired, the business instead charges a full year's depreciation in the year it is purchased and then no
depreciation in the year it is disposed of.
4.10 The reducing balance method
The reducing balance method of depreciation calculates the annual depreciation charge as a fixed
percentage of the carrying amount of the asset, as at the end of the previous accounting period.
For example, a business purchases a non-current asset at a cost of $10,000. Its estimated residual
value is $2,160. The business wishes to use the reducing balance method to depreciate the asset, and
calculates that the rate of depreciation should be 40% of the reducing (carrying) amount of the asset.
(The method of deciding that 40% is a suitable annual percentage is a problem of mathematics, not
financial accounting, and is not described here.)
EXAM FOCUS POINT
If you are expected to use the reducing balance method in the exam, you will be given the percentage
rate to apply; you will not have to calculate it.
Under the reducing balance method, unlike the straight line method, we do not deduct the residual
value from the cost before depreciating. Instead, we depreciate the asset using the percentage given,
until we reach the residual value, and then we stop depreciating, as illustrated in the table below.
$
Asset at cost
Accumulated depreciation
$
10,000
Depreciation in year 1 (40%)
4,000
Carrying amount at end of year 1
6,000
4,000
Depreciation in year 2
(40% of reducing balance)
2,400
Carrying amount at end of year 2
3,600
Depreciation in year 3 (40%)
1,440
Carrying amount at end of year 3
2,160 =
6,400
(4,000 + 2,400)
7,840
(6,400 + 1,440)
residual value
EXAM FOCUS POINT
There are different ways to apply the reducing balance method when the asset has a residual value.
The method we have used here is the one preferred by the ACCA examining team.
You should note that with the reducing balance method, the annual charge for depreciation is higher in
the earlier years of the asset's life, and lower in the later years. In the example above, the annual
charges for years 1, 2 and 3 are $4,000, $2,400 and $1,440 respectively.
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TANGIBLE NON-CURRENT ASSETS
The reducing balance method might therefore be used when it is considered fair to allocate a greater
proportion of the total depreciable amount to the earlier years and a lower proportion to later years, on
the assumption that the benefits obtained by the business from using the asset decline over time. An
example of this could be machinery in a factory, where productivity falls as the machine gets older.
It is permissible for a business to depreciate different categories of non-current assets in different ways.
For example, if a business owns three cars, then each car would normally be depreciated in the same
way (eg by the straight line method); but another category of non-current asset, say, computer
equipment, might be depreciated using a different method (eg by the reducing balance method).
QUESTION
Depreciation methods
A lorry bought for a business cost $17,000. It is expected to last for 5 years and then be sold for scrap
for $2,000.
Required
Work out the depreciation to be charged each year under:
A
B
The straight line method
The reducing balance method (using a rate of 35%)
ANSWER
A
Under the straight line method, depreciation for each of the 5 years is:
Annual depreciation =
B
$(17,000 – 2,000)
= $3,000
5
Under the reducing balance method, depreciation for each of the 5 years is:
Year
1
2
3
4
5
Depreciation
35% × $17,000
35% × ($17,000  $5,950) = 35% × $11,050
35% × ($11,050  $3,868) = 35% × $7,182
35% × ($7,182  $2,514) = 35% × $4,668
Balance to bring book value down to $2,000 = $4,668  $1,634 
$2,000
=
=
=
=
=
$5,950
$3,868
$2,514
$1,634
$1,034
4.11 Change in method of depreciation
It is up to the business concerned to decide which method of depreciation to apply to its non-current
assets. Once that decision has been made, the chosen method of depreciation should be applied
consistently from year to year. However, IAS 16 requires that the depreciation method should be
reviewed periodically. If there has been a significant change in the expected pattern of economic
benefits from those assets, the method should be changed to suit this new pattern. When such a change
in depreciation method takes place, the remaining carrying amount is depreciated under the new
method, ie only current and future periods are affected; the change is not retrospective.
4.12 Example: change in method of depreciation
Jakob Co purchased an asset for $100,000 on 1.1.X1. It had an estimated useful life of 5 years and it
was depreciated using the reducing balance method at a rate of 40%. On 1.1.X3 it was decided to
change the method to straight line.
Show the depreciation charge for each year (to 31 December) of the asset's life.
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PART D: RECORDING TRANSACTIONS AND EVENTS
Solution
Year
20X1
20X2
$100,000 × 40%
$60,000 × 40%
20X3
$100,000 – $64,000
3
20X4
20X5
Depreciation
charge
$
40,000
24,000
Aggregate
depreciation
$
40,000
64,000
12,000
76,000
12,000
12,000
88,000
100,000
4.13 Change in expected useful life or residual value of an asset
The depreciation charge on a non-current asset depends not only on the cost (or value) of the asset and
its estimated residual value but also on its estimated useful life.
A business purchased a non-current asset costing $12,000 with an estimated life of four years and no
residual value. If it used the straight line method of depreciation, it would make an annual provision of
25% of $12,000 = $3,000.
Now what would happen if the business decided after two years that the useful life of the asset has
been underestimated, and it still had five more years in use to come (making its total life seven years)?
For the first two years, the asset would have been depreciated by $3,000 per annum, so that its
carrying amount after two years would be $(12,000  6,000) = $6,000. If the remaining life of the
asset is now revised to five more years, the remaining amount to be depreciated (here $6,000) should
be spread over the remaining life, giving an annual depreciation charge for the final five years of:
Carrying amount at time of life readjustment – residual value
$6,000
=
= $1,200 per year
5 years
New estimate of remaining useful life
FORMULA TO LEARN
New depreciation =
Carrying amount – residual value
Revised useful life
Similar adjustments are made when there is a change in the expected residual value of the asset. For
example, assume that the residual value was changed to $500 at the same time as the remaining useful
life was revised. The new depreciation would then be (6,000 – 500)/5 = $1,100 per year.
4.14 Depreciation is not a cash expense
Depreciation spreads the cost of a non-current asset (less its estimated residual value) over the asset's
life. The cash payment for the non-current asset will be made when, or soon after, the asset is
purchased. Annual depreciation of the asset in subsequent years is not a cash expense – rather it
allocates costs to those later years for a cash payment that has occurred previously.
For example, a business purchased some shop fittings for $6,000 on 1 July 20X5 and paid for them in
cash on that date.
Subsequently, depreciation may be charged at $600 every year for ten years. So each year $600 is
deducted from profits and the carrying amount of the fittings goes down, but no actual cash is being
paid. The cash was all paid on 1 July 20X5. So annual depreciation is not a cash expense, but rather an
allocation of the original cost to later years.
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QUESTION
Depreciation
A
What is the purpose of depreciation?
B
In what circumstances is the reducing balance method more appropriate than the straight line
method? Give reasons for your answer.
ANSWER
A
The purpose of depreciation is to spread the cost of a non-current asset over its useful life in
order to match the cost of the asset over the full period during which the asset consumes
economic benefits for the business. Charging depreciation is an application of the accruals
concept.
B
The reducing balance method of depreciation is used instead of the straight line method when it
is considered fair to allocate a greater proportion of the total depreciable amount to the earlier
years and a lower proportion to the later years, on the assumption that the benefits obtained by
the business from using the asset decline over time.
In favour of this method, it may be argued that it links the depreciation charge to the costs of
maintaining and running the asset. In the early years these costs are low and the depreciation
charge is high, while in later years this is reversed.
4.15 Ledger entries for depreciation
The ledger accounting entries for depreciation are as follows.
(a)
There is an accumulated depreciation account for each separate category of non-current assets;
for example, plant and machinery, land and buildings, fixtures and fittings.
(b)
The depreciation charge for an accounting period is a charge against profit. It is accounted for as
follows.
DEBIT
CREDIT
Depreciation expense (statement of profit or loss)
Accumulated depreciation account (statement of financial position)
with the depreciation charge for the period.
(c)
The balance on the statement of financial position depreciation account is the total accumulated
depreciation. This is always a credit balance brought forward in the ledger account for
depreciation.
(d)
The non-current asset accounts are unaffected by depreciation. Non-current assets are recorded
in these accounts at cost (or, if they are revalued, at their revalued amount).
(e)
In the statement of financial position of the business, the total balance on the accumulated
depreciation account is set against the value of non-current asset accounts (ie non-current assets
at cost or revalued amount) to derive the carrying amount of the non-current assets.
This is how the non-current asset accounts might appear in a trial balance.
Freehold building – cost
Freehold building – accumulated depreciation
Motor vehicles – cost
Motor vehicles – accumulated depreciation
Office equipment – cost
Office equipment – accumulated depreciation
Dr
2,000,000
Cr
500,000
70,000
40,000
25,000
15,000
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PART D: RECORDING TRANSACTIONS AND EVENTS
And this is how they would be shown in the statement of financial position.
Non-current assets
Freehold building (2,000,000 – 500,000)
Motor vehicles (70,000 – 40,000)
Office equipment (25,000 – 15,000)
$
1,500,000
30,000
10,000
4.16 Example: depreciation
Brian Box set up his own computer software business on 1 March 20X6. He purchased a computer
system on credit from a manufacturer, at a cost of $16,000. The system has an expected life of 3 years
and a residual value of $2,500. Using the straight line method of depreciation, the non-current asset
account, accumulated depreciation account and statement of profit or loss (extract) and statement of
financial position (extract) would be as follows, for each of the next 3 years, 28 February 20X7, 20X8
and 20X9.
NON-CURRENT ASSET: COMPUTER EQUIPMENT
(a)
(b)
(c)
(d)
Date
1.3.X6
1.3.X7
1.3.X8
1.3.X9
$
16,000
16,000
16,000
16,000
Accounts payable
Balance b/d
Balance b/d
Balance b/d
Date
28.2.X7
28.2.X8
28.2.X9
$
16,000
16,000
16,000
Balance c/d
Balance c/d
Balance c/d
In theory, the non-current asset has now lasted out its expected useful life. However, until it is sold off
or scrapped, the asset will still appear in the statement of financial position at cost (less accumulated
depreciation) and it should remain in the ledger account for computer equipment until it is eventually
disposed of.
ACCUMULATED DEPRECIATION
Date
$
Date
$
(a)
28.2.X7
Balance c/d
4,500
28.2.X7
P/L account
4,500
(b)
28.2.X8
Balance c/d
9,000
_______
1.3.X7
28.2.X8
Balance b/d
P/L account
4,500
4,500
9,000
(c)
28.2.X9
Balance c/d
13,500
_______
9,000
1.3.X8
28.2.X9
Balance b/d
P/L account
13,500
9,000
4,500
13,500
1.3.X9
Balance b/d
13,500
_
The annual depreciation charge is
$(16,000 2,500)
= $4,500 p.a.
3 years
At the end of the 3 years, the asset is fully depreciated down to its residual value (16,000 – 13,500 =
2,500). If it continues to be used by Brian Box, it will not be depreciated any further (unless its
estimated residual value is reduced).
STATEMENT OF PROFIT OR LOSS (EXTRACT)
(a)
(b)
(c)
148
Date
28 Feb 20X7
28 Feb 20X8
28 Feb 20X9
Depreciation
Depreciation
Depreciation
$
4,500
4,500
4,500
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TANGIBLE NON-CURRENT ASSETS
STATEMENT OF FINANCIAL POSITION (EXTRACT) AS AT 28 FEBRUARY
20X7
$
16,000
4,500
11,500
Computer equipment at cost
Less accumulated depreciation
Carrying amount
20X8
$
16,000
9,000
7,000
20X9
$
16,000
13,500
2,500
4.17 Example: depreciation for assets acquired part-way through the
year
Brian Box prospers in his computer software business, and before long he purchases a car for himself,
and later for his chief assistant Bill Ockhead. Relevant data is as follows.
Brian Box car
Bill Ockhead car
Date of purchase
1 June 20X6
1 June 20X7
Cost
$20,000
$8,000
Estimated life
3 years
3 years
Estimated residual value
$2,000
$2,000
The straight line method of depreciation is to be used.
Prepare the motor vehicles account and motor vehicle depreciation account for the years to 28 February
20X7 and 20X8. (You should allow for the part-year's use of a car in computing the annual charge for
depreciation.)
Calculate the carrying amount of the motor vehicles as at 28 February 20X8.
Solution
(a)
(i)
Brian Box car
Annual depreciation
$(20,000 _ 2,000)
=
3 years
Monthly depreciation = $500
Depreciation
1 June 20X6 – 28 February 20X7 (9 months)
1 March 20X7 – 28 February 20X8
(ii)
Bill Ockhead car
Depreciation
$(8,000 _ 2,000)
=
3 years
1 June 20X7 – 28 February 20X8 (9 months)
Annual depreciation
(b)
$6,000 p.a.
$4,500
$6,000
$2,000 p.a.
$1,500
MOTOR VEHICLES
Date
1 Jun 20X6
1 Mar 20X7
1 Jun 20X7
1 Mar 20X8
$
Payables (or cash)
(car purchase)
20,000
Balance b/d
Payables (or cash)
(car purchase)
20,000
Balance b/d
28,000
8,000
28,000
Date
$
28 Feb 20X7
Balance c/d
20,000
28 Feb 20X8
Balance c/d
28,000
28,000
MOTOR VEHICLES – ACCUMULATED DEPRECIATION
Date
28 Feb 20X7
Balance c/d
$
4,500
Date
28 Feb 20X7
28 Feb 20X8
Balance c/d
12,000
1 Mar 20X7
28 Feb 20X8
P/L account
Balance b/d
P/L account
(6,000+1,500)
$
4,500
4,500
7,500
12,000
12,000
1 Mar 20X8
Balance b/d
12,000
149