Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

More Books

Students also viewed these Accounting questions

Question

Demonstrate three aspects of assessing group performance?

Answered: 1 week ago