FINANCIAL ACCOUNTING

QUESTION 1 The following appears in the books of Monica Traders on 1 March 2015: Office equipment 399 420 Accumulated depreciation office equipment 180 000 During the financial year ended 28 February 2016, the following transactions pertaining to office equipment took place: On 1 December 2015, a new coffee machine for use by office staff and personnel was bought for R31 920 cash, including VAT. On 1 September 2015, an old computer, which had been bought on 1 December 2014 for R20 700 (including VAT), was sold for R5 750 cash (including VAT). Important additional information: Monica traders is a registered VAT vendor. A standard VAT rate of 15% applies. In accordance with the VAT act, office equipment used for the purposes of staff entertainment are non-allowable items. In accordance with the VAT act, office equipment used for business purposes are standard- rated allowable items Monica Traders depreciates all their assets at a rate of 33 1/3% according to the reducing balance method. Required: 1.1 Present the following accounts in the general ledger of Monica Traders for the year ended 28 February 2016 to your lecturer. Office equipment (B4) Accumulated depreciation office equipment (B5) Asset disposal (N16) Show all your calculations