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The following balances (amongst others) appeared in the books of Beauty's Products on 31 March 20.3: Additional information: On 1 April 20.3, a vehicle with
The following balances (amongst others) appeared in the books of Beauty's Products on 31 March 20.3: Additional information: On 1 April 20.3, a vehicle with a cost price of R 84000 and an accumulated depreciation of R 52380 was traded in on a new vehicle bought from Kendra Motors. The purchase price of the new vehicle was R 135000 (Invoice S434), and the trade-in covered R 30000 of this amount. The balance was financed through a Hire Purchase Loan from Zeda Finance. Beauty's Products depreciates vehicles at a rate of 25% per annum according to the diminishing balance method. The information given above refers to all the movements relating to vehicles for the financial year ending 31 March 20.4. Required: (i) Prepare the following ledger accounts in the books of Beauty's Products for the financial year ending 31 March 20.4: - Vehicles - Accumulated depreciation: vehicles - Depreciation - Asset disposal - Profit/loss on trade-in/disposal (ii) Show the relevant entries made in the subsidiary journals on 1 April 20.3 and 31 March 20.4 respectively. (Note: Ignore VAT)
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