## Answers

a) Journal entry disposal of truck :

Date | accounts & explanation | debit | credit |

Cash | 15400 | ||

Accumlated depreciation | 33600 | ||

Delivery truck | 49000 | ||

(To record disposal of truck) | |||

b) Journal entry disposal of truck :

Date | accounts & explanation | debit | credit |

Cash | 16000 | ||

Accumlated depreciation | 33600 | ||

Gain on disposal of delivery truck | 600 | ||

Delivery truck | 49000 | ||

(To record disposal of truck) | |||

c) Journal entry disposal of truck :

Date | accounts & explanation | debit | credit |

Cash | 12700 | ||

Accumlated depreciation | 33600 | ||

Loss on disposal of delivery truck | 2700 | ||

Delivery truck | 49000 | ||

(To record disposal of truck) | |||

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