Question 430 marks) The financial year-end of Mariental General Dealers is 31 December Vehicles are depreciated 20 percent per annum using the reducing balance method. Depreciation is calculated on each month of ownership, both in the year of purchase and sale The following information relates to the purchase and sale of vehicles from 1 January 2010 to 31 December 2012 Bought a vehicle on 1 January 2010 for N$60 000 by cheque a 1 $ Bought a vehicle on 1 July 2010 for N580 000 on credit from Audi Centre Purchased a vehicle on 1 October 2011 for N5100 000 by cheque Sold the vehicle bought on 1 January 2010 for N$40 000 by cheque on 30 September 2012 You are required to A) Prepare the following accounts for the three years 1 January 2010 10 31 December 2012 i Vehicles 8ccount (7 marks) IL. Provision for depreciation on vehicles account (13 marks) ii Vehicle disposal account (4 marks) h Mariental General Dealers uses the reducing halance method for depreciation on veicies Do you consider this method to be an appropriate method? Give two reasons for your answerdmarks) Mariental General Dealers want to change the method of depreciation for vehicles in ander to increase the net profit to the year. Discuss if this can be slowed. (2 marks) Page 21 of 24 Question 5/12 marks) Elliot Trading cc, es an accounting year end of 31 October. The accountant is preparing the financial statements as at 31 October 2017 and requires your assistance. The following Trial balance has been extracted from the general ledger. Credit Debt 740 000 60 000 Buvings at cost Buildings accumulated depreciation 1.11.2016 Plantat cost Plant Accumulated depreciation, 1.11.2016 Bank 220 000 110 000 70 CCO 1 800 000 Revenue 1 140 000 160 000 20000 250 000 Not purchase Inventory Cash Payables Receivables Administrative expenses Allowance for receivables at 1.11.16 Capital 320 000 325 000 10 000 2925000 2925 000 The following additional information is also switable 1. The alowance for receivable is to be increased to 5% of trade receivables. The alowance for receivable is treated as an expense. 2. Plant is depreciated at 20% per annum using reducing balance method and buildings are depreciated at 5% per annum on their original. Depreciation for the buidings and the plant should be treated as drawing 3. Closing inventory has been counted and is valued at N$75 000 Page 22 of 24 Question 430 marks) The financial year-end of Mariental General Dealers is 31 December Vehicles are depreciated 20 percent per annum using the reducing balance method. Depreciation is calculated on each month of ownership, both in the year of purchase and sale The following information relates to the purchase and sale of vehicles from 1 January 2010 to 31 December 2012 Bought a vehicle on 1 January 2010 for N$60 000 by cheque a 1 $ Bought a vehicle on 1 July 2010 for N580 000 on credit from Audi Centre Purchased a vehicle on 1 October 2011 for N5100 000 by cheque Sold the vehicle bought on 1 January 2010 for N$40 000 by cheque on 30 September 2012 You are required to A) Prepare the following accounts for the three years 1 January 2010 10 31 December 2012 i Vehicles 8ccount (7 marks) IL. Provision for depreciation on vehicles account (13 marks) ii Vehicle disposal account (4 marks) h Mariental General Dealers uses the reducing halance method for depreciation on veicies Do you consider this method to be an appropriate method? Give two reasons for your answerdmarks) Mariental General Dealers want to change the method of depreciation for vehicles in ander to increase the net profit to the year. Discuss if this can be slowed. (2 marks) Page 21 of 24 Question 5/12 marks) Elliot Trading cc, es an accounting year end of 31 October. The accountant is preparing the financial statements as at 31 October 2017 and requires your assistance. The following Trial balance has been extracted from the general ledger. Credit Debt 740 000 60 000 Buvings at cost Buildings accumulated depreciation 1.11.2016 Plantat cost Plant Accumulated depreciation, 1.11.2016 Bank 220 000 110 000 70 CCO 1 800 000 Revenue 1 140 000 160 000 20000 250 000 Not purchase Inventory Cash Payables Receivables Administrative expenses Allowance for receivables at 1.11.16 Capital 320 000 325 000 10 000 2925000 2925 000 The following additional information is also switable 1. The alowance for receivable is to be increased to 5% of trade receivables. The alowance for receivable is treated as an expense. 2. Plant is depreciated at 20% per annum using reducing balance method and buildings are depreciated at 5% per annum on their original. Depreciation for the buidings and the plant should be treated as drawing 3. Closing inventory has been counted and is valued at N$75 000 Page 22 of 24