Hi,

Please assist urgently,thus far i have received two different working/answers for 2.5.&2.6(Refer below working)

2.5

Prepare the Accumulated Depreciation on Vehicles account in the general ledger to reflect all the entries up to the end of the financial year.

(5)

2.6

Prepare the following note to the financial statements (amount column for Vehicles only) as at 28 February 2017:

Property, plant and equipment

(5)

INFORMATION

Steers Enterprises owns a fleet of motor vehicles. The following balances appeared in the general ledger on 01 March 2016, the beginning of the financial year:

Vehicles at cost

Accumulated depreciation on vehicles

R1 000 000

R400 000

Additional information

On 31 August 2016, a vehicle that cost R200 000 was sold for R32 000 cash. The accumulated depreciation on this vehicle was R165 000 on 01 March 2016.

On 01 December 2016 a new vehicle was purchased for R250 000 cash.

Deprecation is provided for on vehicles at 20% per annum on the diminishing balance.

Answers received

2.5.
Accumulated Depreciation on Vehicle Cost
		Debit	Credit
01 March.2016	Beginning Balance		400000
31 Aug.2016	Current year. (Mar-Aug) Depreciation on vehicle sold		3500
	Depreciation on vehicle sold written back	168500
28 Feb.2017	Depreciation on new vehicle		12500
	Balance c/d	247500
		416000	416000

2.6.
Notes to the financial statement-Property, plant and Equipment
Property, plant and Equipment (at Cost)	1050000
Less: Accumulated Depreciation	247500
Property, plant and Equipment (net)	802500
1.Accounting Policy -Property, plant and Equipment include vehicle (in this case)
The property, plant and Equipment are measured at cost less accumulated depreciation
and impairment loss if any.
2.Additional During year - R250000
3.Disposal during year - R200000
4.Depreciation is provided on diminishing value method at 20%