Foster Incorporated, a registered VAT vendor, bought a delivery vehicle on the day they opened the doors of their business on 1 November 20.1. The purchase price of the vehicle was R205 200, including VAT. They decided that the accounting date would be 31 October annually. On 1 November 20.4 the vehicle was sold to Hanrod Traders for R102 600 cash (including VAT). Receipt no. RC374 was issued. The following represents a detailed statement of depreciation charges on the vehicle from the date of purchase until the date of sale:

REQUIRED: COMPLETE

General ledger of Foster Incorporated
Vehicles
Date		Details	Fol	Amount	Date		Details	Fol	Amount
20.4	1	Balance	b/d	A. 180 000 B. 87 840 C. 2160 D. 102 600	20.4	1	A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles	GJ	180 000
Nov					Nov
Accumulated depreciation: Vehicles
Date		Details	Fol	Amount	Date		Details	Fol	Amount
20.4	1	A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles	GJ	A. 180 000 B. 87 840 C. 2160 D. 102 600	20.4	1	Balance	b/d	87 840
Nov					Nov
Asset disposal
Date		Details	Fol	Amount	Date		Details	Fol	Amount
20.4	1	Vehicles	GJ	A. 180 000 B. 87 840 C. 2160 D. 102 600	20.4	1	Accumulated depreciation	GJ	87 840
Nov					Nov		A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles	CBR	90 000
							Loss on sale of vehicle	GJ	A. 180 000 B. 87 840 C. 2160 D. 102 600
				180 000					A. 180 000 B. 87 840 C. 2160 D. 102 600
Bank
Date		Details	Fol	Amount	Date		Details	Fol	Amount
20.4	1	Balance	b/d	XXXX
Nov		Total receipts	CBR	A. 180 000 B. 87 840 C. 2160 D. 102 600
Output VAT
Date		Details	Fol	Amount	Date		Details	Fol	Amount
				A. 180 000 B. 87 840 C. 2160 D. 102 600	20.4	1	A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles	CBR	12 600
					Nov
Loss on sale of vehicle
Date		Details	Fol	Amount	Date		Details	Fol	Amount
20.4	1	Asset disposal	GJ	A. 180 000 B. 87 840 C. 2160 D. 102 600
Nov

General Journal of Foster Incorporated for November 20.4
Doc	Day	Details	Debit	Credit
JV	1	Asset disposal	180 000
		A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles		180 000
		(Transfer of cost price to asset disposal)
JV		Accumulated depreciation	A. 180 000 B. 87 840 C. 2160 D. 102 600
		Asset disposal		87 840
		(Transfer of accumulated depreciation to asset disposal)
JV		A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles	2160
		A. Asset disposal B. Bank C. Vehicles D. Loss on sale of vehicles		2160
		(Loss on sale of vehicle)