Asset Register Worksheets, Depreciation, Disposal of Assets - Desklib SEO

Unit Assessment Guide
Assessment Cover Sheet
QUESTION 1 - Asset Register Worksheets, Depreciation, Disposal of
Assets
Magic Mondo purchased two Machines for cash, which were both installed ready
for use on 1 January 20x2.
Machine 1 cost $41,998 ($38,180 + $3,818 GST) and had a residual value of
$1,100 ($1,000 + $100 GST) and is depreciated at 20% pa straight line.
Machine 2 cost $88,000 ($80,000 + $8,000 GST) with a residual value of nil and
is depreciated at 25% pa reducing balance.
Magic Mondo has a 30 June balance date
On 1 May 20x3 machine 1 was sold for cash $22,000 ($20,000 + $2,000 GST)
On 1 May 20x3 machine 3 was purchased for cash, delivered and installed at a
total cost of $60,379 ($54,890 + $5,489 GST) with a residual value of $5,379
($4,890 + $489 GST) and is depreciated at 30% pa reducing balance.
REQUIRED:
Prepare for the years ended 30 June 20x2 and 20x3 the following:
 Fixed asset register worksheets for all machines showing depreciation,
accumulated depreciation and written-down value as well as the disposal
details where applicable
NOTE: Round all depreciation calculations to the nearest whole
dollar.
 Prepare a Fixed Asset Register Summary for 20x2 and 20x3 General journals for all entries including original purchase of assets,
balance day adjustments (depreciation), additional depreciation entries to
date of sale, disposal journals (all) and closing journals (depreciation & gain
or loss on disposal).
NOTE: all entries (even bank entries) are to be recorded in General
Journal format.
 Post all General Journal entries to the relevant General Ledger accounts
included in the answer booklet
Prepare for the year ended 30 June 20x3:
Unit code: BSBFIA401 Created: 10/08/2015 [ 1 of 1 0 ]

Unit Assessment Guide
 extracts of the Financial Statements (Income Statement and Balance
Sheet) for 20x3 year only
sssssHINT: Under the Diminishing Balance Method - the residual value is not deducted from the
asset’s cost to calculate depreciation charges – it only affects depreciation charges when the
asset’s WDV equals the residual value which will occur towards the end of the useful life of an
asset; at which time a balancing charge will be required for depreciation expense so the asset
does not get depreciated below its residual value amount. Hence N/A has been inserted in the
Diminishing balance worksheets. Start depreciating these assets from their cost which is their
Opening Carrying Amount i.e. WDV
ANSWER BOOKLET - Assessment 2 of 3 - Question 1
DEPRECIATION WORKSHEETS
MACHINE 1 MACHINE 2
MACHINE 3
Diminishing Balance Depreciation Method
Asset Description: Machin
e 3
Unit code: BSBFIA401 Created: 10/08/2015 [ 2 of 1 0 ]
Machine 2
$
30 June 20x2
30 June 20x3
Diminishing Balance Depreciation Method
Asset Description:
Rate pa ____25____ % on opening WDV (i.e. carrying amt)
Asset cost incl. Installation 80000
Less Residual value 0
Depreciable Amount 80000
Accum-
ulated
Dep'n
Closing
Carrying
Amount (WDV)
Date
Opening
Carrying
Amount
Dep'n
Exp Current
Year
10000 70000
70000 17500 27500 52500
80000 10000
Asset Description:Machine 1
$
30 June
20x2
1 May 20x3
Straight-line Depreciation Method
Asset cost incl. Installation 38180
Accum-ulated
Dep'n
Rate pa ____20____ % on depreciable amt
Less Residual value 1000
Depreciable Amount 37180
Deprec $ 7436 p.a.
Date
Asset
Cost
Dep'n
Exp Current
Year
Closing
Carrying
Amount
33462 6197 9915 27265
37180 3718 3718 33462

Unit Assessment Guide
Asset cost incl. Installation 54890
Less Residual value 4890
Depreciable Amount $ 50000
Rate pa _____30___ % on opening WDV (i.e. carrying amount)
Date
Openin
g
Carryin
g
Amoun
t
Dep'n Accum
-ulated Closing
Exp
Curren
t Year
Dep'n Carryin
g
Amoun
t (WDV)
30 June 20x3 50000 2500 2500 47500
Unit code: BSBFIA401 Created: 10/08/2015 [ 3 of 1 0 ]