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A company director (small pty ltd) allows his truck

24 / 01 / 2019 Assignments

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A company director (small pty ltd) allows his truck

A company director (small pty ltd) allows his truck valued at $50,000 to be used by his company ABC Pty Ltd to generate income for the company. The truck is included in the balance sheet as an asset of the company and all fuel, repairs and depreciation are claimed by the company. Fuel $5000, repairs $2000 depreciation $4000.The director sells the truck at the end of the year for $20,000.a) Show journal entries to introduce the truck as an asset of the companyb) Record truck expenses for the yearc) Calculate profit/loss on sale and show all journals in the books of the company to remove the truck from its accounts.


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