The following information was extracted from the accounting records of Kumkani Traders: Balances at 1 November 20.9: R Equipment: Cost. 280 000 Accumulated depreciation: Equipment
The following information was extracted from the accounting records of Kumkani Traders:
Balances at 1 November 20.9: | |
R | |
Equipment: Cost. | 280 000 |
Accumulated depreciation: Equipment | (164 800) |
Additional information
(a) At the beginning of the financial year, 1 November 20.9, Kumkani Traders decided to upgrade some of its processes by selling old printing equipment for R31 000 cash. The machine was bought on 1 November 20.4 for R180 000. Depreciated was provided for at 15% p.a. on the straight-line method.
(b) On 1 December 20.9 Kumkani Traders bought 3D printing equipment for R145 600 on credit from Fourth Dimension. Depreciation on the new machine must be provided for at 25% per annum on the diminishing balance method.
Calculate the depreciation on the 3D printing equipment for the year ended 31 October 20.10.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started