Question
2.2 REQUIRED Use the information provided below to post to the following accounts in the general ledger. Balance or close off the accounts. 2.2.1 Vehicles
2.2 REQUIRED Use the information provided below to post to the following accounts in the general ledger. Balance or close off the accounts. 2.2.1 Vehicles 2.2.2 Accumulated depreciation on vehicles 2.2.3 Fixed asset realisation (4 marks) (6 marks) (5 marks) INFORMATION On 01 March 2022, the beginning of the financial year, the following balances (amongst others) appeared in the general ledger of Ascot Traders: Vehicles Accumulated depreciation on vehicles R900 000 R380 000 A motor vehicle that cost R200 000 was sold for R52 000 cash on 31 August 2022. The accumulated depreciation on the vehicle amounted to R120 000 on 01 March 2022. Depreciation is calculated at 20% per annum using the fixed instalment method. On 01 September 2022 a new vehicle was purchased for R300 000 cash to replace the vehicle that was sold. Provide for depreciation on vehicles for the year ended 28 February 2023.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started