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Please solve the following question and explain it step by step in detail, with theory (ou are given the following extract of the pre-adjustment trial
Please solve the following question and explain it step by step in detail, with theory
(ou are given the following extract of the pre-adjustment trial balance for Arch Traders for the financial year ended 30 September 20.2. XRCH TRADERS EXTRACT OF THE PREmJUSTMENT TRIAL BALANCE AS AT 30 SEPTEMBER 20.2 Debit Capital Drawings.. Buildings. Land Vehicles. Equipment Accumulat preciatlon Vehicles(l October 20.1 Accumulated depreciation. Equipment (1 October 20.1 Trade receivables control.. Inventory. Bank overdraft Trade pa ables control. Additional information Credit 525 ooo 25 ooo 160 ooo 450 ooo 500 ooo 280 ooo 100 ooo 60 ooo 225 ooo 250 ooo 714 750 300 ooo a. On 1 October 20M Arch Traders bought a new vehicle to the value of R280 000. b. On 30 June 202 one of the two old vehicles bought on 1 October 20 0 were sold for R 100000 The vehicle was bought at a cost pnce of R250 OOC c. Depreciation for the year must be provided as follows: Equipment Vehicles 10% per annum on the straight-line method 20% per annum on the diminishing balance method The correct property, plant and equipment note for vehicles (total column excluded) for Arch Traders on 30 September 20 2 will be Instructions: Property, plant and equipment Accurnulate < End of Vehicles
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