P.S. - USE THE PROVIDED FORMAT FOR THE FINAL ANSWER, YOU WILL NOT GET AN UPVOTE!

Question:

A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on 31 December 2020 (Year-end) is sold on 31 March 2021 for R45 000 to Mr Hamilton. It was agreed that he would pay 50% cash and the balance on 30 June 2021. Depreciation is written off at 20% per annum using the diminishing balance method. The entity is not registered for VAT.

Required:

Prepare all the journal entries to record the disposal of the vehicle on 31 March 2021. Journal narrations are required. All calculations must be shown as well.

Use the following format to answer the question:

Document	Date	Details	Fol.	Dr	Cr