Question

I'm having trouble with a cash flow statement currently working on the investments, in financial position I have;

ASSETS
Property, Plant & Equipment 2018 - 205,000 and 2019 - 310,000
Accumulated Depreciation, PP&E 2018 - (40,000) and 2019 - (46,500)

In my Profit and Loss Satement;
Gain on sale of plant & equipment 5000

and additional information given;

- PP&E costing 141,000 was purchased for cash during the year
- PP&E costing 36,000 was sold during the year
- other eexpenses include 35,500 dep'n expense on PP&E
- all sales are on credit

How would I find the cash figure using T accounts for this any help wpuld be great, thanks

Answer 1

Ans-

Cash Account
Debit			Credit
Sale of asset	$ 41,000.00	Expenses ($35,500-6500)	$    29,000.00
($36,000+$5,000)		Purchase of Asset	$ 141,000.00
Closing Cash Balance	129,000.00

Working Note

1)

Calculation of Cash Expenses
	Total Expenses	$    35,500.00
Less	Depreciation for 2019	$    (6,500.00)
	($46500-$40,000)
	Cash Expenses	$    29,000.00

2)

Calculation of Sale Proceeds from Asset Sold
	Cost of the Asset	$    36,000.00
Add.	Gain On Sale	$      5,000.00
	Amount Received	$    41,000.00