Consider the following details of Statehouse Ltd for the month of May 2021.
i) 2nd
May 2021 bought equipment worth 4,000,000 vh. on credit from Cuma Ltd.
ii) 4th May sold motor Vehicle valued at 4,000,000 sh. On credit to Kanyi Ltd. For
500,000 h.
iii) 11th of May wold furniture worth 3,000,000 sh. For 2,500,000 to Wobera Ltd.
iv) Sold a house worth 12,000,000 sh. to Jordan Ltd for 15,000,000 GL.
v) 5th of May bought a van worth 6,800,000 wh. On credit from Mark x ltd.
Required:
(a) Prepare
the
ledger accounts for each transaction and clearly showing arrels
account, disposal account and profit and love where applicable.
b) Explain the main
Soln.
Importance of using the disposal account when dispoving assets
necessary
