Question 1

If the cost of an asset is R100 000, and the accumulated depreciation up to the end of the first year is R15 000, then the depreciation amount at a rate of 20% using the reducing balance method, for the second financial year will amount to?

Question 2

If an asset was purchased for R68 000 on the 1/5/2023 and the financial year end is 31/12/2023, then if the asset is depreciated over 3 years, the current year depreciation will be ?

Question 3

YelloStores, registered VAT vendor, bought furniture for R99 864 inclusive of VAT on 31 July 2021 It was decided to depreciate the furniture at 20%pa according to the straight-line method. At the end of the financial year ending 28 February 2022,YelloStores will record the following accounting entries:

a.

Debit Depreciation expense R8 760 ; Credit Accumulated depreciation R 8 760

b.

Debit Depreciation expense R11 651 ; Credit Accumulated depreciation: Furniture R 11 651.

c.

Debit Depreciation expense R10 220 ; Credit Accumulated depreciation: Furniture R 10 220.

d.

Credit Depreciation expense R8 760; Debit Accumulated depreciation: Furniture R 8 760.