The following balances appeared in the general ledger of Umzinto Traders on 01 March 2012, the beginning of the financial year:   R     Vehicles 300 000     Accumulated depreciation on vehicles 140 000     Equipment 130 000     Accumulated depreciation on equipment 75 000       Additional information A new vehicle, cost price R160 000, was purchased on credit on 01 December 2012. Equipment with a cost price of R10 000, was sold for cash on 31 August 2012 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2012. Depreciation is calculated on equipment at 10% per annum on cost. Depreciation is calculated on vehicles at 20% per annum on the diminishing balance. Prepare the following note to the financial statements as at 28 February 2013:                    Property, plant and equipment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following balances appeared in the general ledger of Umzinto Traders on 01 March 2012, the beginning of the financial year:

 

R

 

 

Vehicles

300 000

 

 

Accumulated depreciation on vehicles

140 000

 

 

Equipment

130 000

 

 

Accumulated depreciation on equipment

75 000

 

 

 

Additional information

  • A new vehicle, cost price R160 000, was purchased on credit on 01 December 2012.
  • Equipment with a cost price of R10 000, was sold for cash on 31 August 2012 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2012.
  • Depreciation is calculated on equipment at 10% per annum on cost.
  • Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.

Prepare the following note to the financial statements as at 28 February 2013:                  

 Property, plant and equipment

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