QUESTION 2: FIXED ASSETS (42 marks)

You were appointed as the fixed asset manager at DD Couriers. They use different heavy vehicles to deliver sand on building sites. They appointed you because they do not know how to record the depreciation, asset disposals etc. and they are concerned about possible misuse of the assets

INSTRUCTION: Use the relevant information to complete the following and answer the questions:

1. Complete the asset register for the vehicle with registration number TT 90 KP GP.(16)
2. Draw up the Fixed asset note to the Statement of Financial Position on

28 February 2021. (26)

INFORMATION:

1. Balances on 1 March 2020

Land and buildings	2 500 000
Vehicles	680 000
Accumulated depreciation on vehicles	139 600
Equipment	255 000
Accumulated depreciation on equipment	229 500

2. Information regarding vehicles:

Vehicle 1: TT 90 KP GP

• Cost price: R280 000
• Date purchased: 1 June 2018
• Average monthly kilometres: 1 800 km recorded
• Total kilometres on odometer: 39 600 km

Vehicle 2: CC 11 KL GP

• Cost price: R250 000
• Date purchased: 1 March 2019
• Average monthly kilometres: 1 380 km recorded
• Total kilometres on odometer: 33 120 km
• Accumulated depreciation on 28 February 2020 = R50 000

Vehicle 3: LP 88 JH GP

• Cost price R150 000
• Date purchased: 28 February 2020
• Average monthly kilometres: 2 100 km recorded
• Total kilometres on odometer: 27 500 km

ANSWER SHEET: FIXED ASSETS (42marks)

2.1 Complete the asset register for the vehicle with registration number TT 90 KP GP. (16)

ASSET REGISTER Item: ________________________ Date purchased: ____________________ Cost price: ___________________ Date sold: _________________________ Depreciation rate and method: ___________________________________
Date	Depreciation Calculation	Accumulated Depreciation	Carrying Value

2.2 Fixed asset note to the Statement of Financial Position on 28 February 2021. (26)

	Land and Buildings	Vehicles	Equipment
CARRYING VALUE: BEGINNING OF THE YEAR
COST PRICE
ACCUMULATED DEPRECIATION
MOVEMENTS
CARRYING VALUE: END OF THE YEAR
COST PRICE
ACCUMULATED DEPRECIATION