In: Accounting
1.
a. To record deposit received against equipment rental |
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Date |
Account Title |
Debit |
Credit |
April.5 |
Cash |
15000 |
|
Deposit against equipment rental |
15000 |
||
b. To record refund of deposit on return of equipment |
|||
Date |
Account Title |
Debit |
Credit |
April.10 |
Deposit against equipment rental |
15000 |
|
Cash |
15000 |
2.
a. To record deposit received against equipment rental |
||||
Date |
Account Title |
Debit |
Credit |
|
April.5 |
Cash |
15000 |
||
Deposit against equipment rental |
15000 |
|||
b. To record refund of 80% of deposit on short return of equipment |
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Date |
Account Title |
Debit |
Credit |
|
April.10 |
Deposit against equipment rental |
15000 |
||
Deposit forfeited |
3000 |
|||
Cash |
12000 |
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c. To record adjustment of forfeited deposit against equipment |
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Date |
Account Title |
Debit |
Credit |
|
April.10 |
Deposit forfeited |
15000 |
||
Equipment |
1500 |
|||
Gain on forfeiture of deposit |
1500 |
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The deposit forfeited is $1,000. This means that the cost of the equipment |
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Cost is $1500. Hence there is a gain of $1500 on forfeiture of the deposit. |
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