Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

REQUIRED Use the information provided below to answer the following questions: 1.3.1 Prepare the Asset Disposal account in the general ledger of Powerade Stores. The

image text in transcribed

REQUIRED Use the information provided below to answer the following questions: 1.3.1 Prepare the Asset Disposal account in the general ledger of Powerade Stores. The account must be closed off. (6 marks) 1.3.2 Calculate the deprecation for financial year ended 28 February 2022 on the vehicle that was sold. (2 marks) 1.3.3 Calculate the deprecation for the financial year ended 28 February 2023 on the vehicle that was purchased on 01 September 2022. (2 marks) INFORMATION 1. On 01 March 2022 the following balances, amongst others, appeared in the books of Powerade Stores: \begin{tabular}{|l|l|} \hline Vehicles (at cost) & R660000 \\ \hline Accumulated depreciation on vehicles & R440000 \\ \hline \end{tabular} 2. On 01 March 2022 a vehicle (which was estimated to have a useful life of six years) that originally cost R240 000 was sold on credit for R90 000 . The accumulated depreciation on this vehicle amounted to R160000 on 01 March 2022. Depreciation is calculated on vehicles using the straight-line method. The financial year ended on 28 February 2023. 3. On 01 September 2022 a new vehicle (with a useful life of six years) was purchased for R300 000 cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing E4 Im

Authors: KNAPP

4th Edition

0324048602, 978-0324048605

More Books

Students also viewed these Accounting questions