Accounting assignment due date: 20 August 2018
The following balances appear in the books of Allan Joss Traders on 1 January 2016:
Accumulated Depreciation 42500
The following transactions occurred during the financial year ended 31 December 2016. Depreciation is calculated at 10% per annum according to the fixed instalment method.
April 1 an old vehicle, which originally cost R35000 (vat excluded) on 1 October 2013, was traded in on a new vehicle for R24000. The new vehicle cost R54000.
July 1 purchase a new vehicle for R60000 cash.
Enter the above-mentioned transactions in the following ledger accounts for the year ended 31 Dec 2016. Vat of 14% is included in all figures where applicable.
Accumulated depreciation: vehicle
The following balances were taken from the accounting records of Venda Traders at 28 February 2015:
Accumulated depreciation 110000
It is the policy of the business to depreciate vehicle at 15% per annum according to the reducing balance method. Vat of 14% is included where applicable.
The following transactions occurred during the financial year ended 28 Feb 2016:
Aug 1 purchased a vehicle on credit from Benz Motors, R90000
Jan 1 sold an old vehicle, originally purchased on 1 march 2010, for R60000(vat excluded), on credit to W Wallis for R45000.
Record the above-mentioned transactions in the following ledger accounts for the financial year ended 28 Feb 2016.
Accumulated depreciated: vehicles
On 1 March 2015 the beginning of the financial year, Bokomo Traders owned two vehicles with a total cost of R180000.
The accumulated depreciation on the two vehicles amounted to R33800 on 1 March 2015.
Depreciation on vehicles is calculated at 20% per annum on the straight-line method.
On 1 September 2015 a vehicle which cost R80000 on 1 March 2013 was sold cash for R60000 and a new vehicle with a cost price of R140000 was purchased on credit.
Use the above information and prepare the following ledger accounts for the year ended 28 Feb 2016. ( All amounts exclude VAT)
Accumulated depreciation on vehicles