Posted: October 10th, 2023

Depreciation Expense Account Assignment

1. Differentiate the following terms as used in accounting.
2. Accruals and prepayments.
3. Drawings and depreciation
4. Discount received and discount allowed
5. Returns inward and returns outwards
6. John Keen acquired a motor vehicle at $ 3,000 paid cash on 1^st January 2004. The company depreciates the motor vehicle at 10% on the cost per year.

Required:

1. Compute depreciation for five years.
2. Draw the depreciation expense account and accumulated depreciation account.
3. On 12th January 2004 XYZ Limited made credit sales as follows:
4. Invoice No. 001 sales to Musa Sh. 5,000,000
5. Invoice No. 002 sales to Jacob Sh. 2,000,000
6. Invoice No. 003 sales to Jemimah Sh. 3,000,000
7. Invoice No. 005 sales to John Sh. 1,500,000

Required:

Draw up the sales day book.  Get Accounting homework help today