Additional information: • A new building was purchased for cash on the 1st September 2020 for R1 000 000. • The vehicles balance at 1 March 2020 consists of
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The following balances appeared in the books of Santiago Traders on 1 March 2020:
Land and Buildings
900 000
Vehicles
250 000
Machinery
200 000
?
Accumulated Depreciation on Machinery
?
Additional information:
• A new building was purchased for cash on the 1st September 2020 for R1 000 000.
• The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of R120 000 was sold on the 31st October 2020 on credit to Miss Smith for R60 000. The vehicle was purchased on the 31 May 2018. Vehicle B was purchased on the 1 March 2019.
• Purchased a new delivery vehicle (Vehicle C) for R345 000 on credit from N&N Motors on 1 December 2020
• All machinery was purchased on the 30 April 2017
• The depreciation policy on non-current assets are as follows:
o Vehicles: 20% on cost using the straight-line method and no residual value
o Machinery: 10% per annum using the diminishing balance method and no residual value
• IGNORE VAT
• Santiago Traders has a 28 February year end
Q.1.1
Journalise ALL the above transactions for the year ended 28 February 2021 in the General Journal including the year-end
Round off to the nearest Rand
Narrations are not required
(46)
Q.1.2
If Santiago Traders wants to sell Vehicle C on 31 May 2021 and make a profit on sale of the vehicle, how much should Santiago Traders sell the vehicle for? Provide calculations to support your answer
(4)
Step by step
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- Study the information given below and answer the following questions:5.1 Calculate the profit or loss on the disposal of the equipment. 5.2 Prepare the following note to the financial statements as at 28 February 2020:* Property, plant and equipment INFORMATIONThe following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year:RVehicles 300 000Accumulated depreciation on vehicles 140 000Equipment 130 000Accumulated depreciation on equipment 75 000Additional information1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019.2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019.3) Depreciation is calculated on equipment at 10% per annum on cost.4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.The balance in the vehicles account in the ledger of smwg limted was R 1 250 000 on 01 January 2023. A vehicle, with a cost price of R 375 000 and accumulated depreciation of R 300 000, is planned to be sold for R 62 500 on 30 June 2023. A new vehicle with a cost price of R 625 000 will be purchased to replace it on the same day. The total depreciation on vehicles for 2023 is estimated to be R 312 500. What will be the carrying value of the vehicles in the pro forma statement of financial position as at 31 December 2023? Please don't copy answer from Chegg plz1 Calculate the profit or loss on the disposal of the equipment. 2 Prepare the following note to the financial statements as at 28 February 2020: * Property, plant and equipment INFORMATION The following balances appeared in the general ledger of Umzinto Traders on 01 March 2019, the beginning of the financial year: Vehicles 300 000 Accumulated depreciation on vehicles 140 000 Equipment 130 000 Accumulated depreciation on equipment 75 000 Additional information 1) A new vehicle, cost price R160 000, was purchased on credit on 01 December 2019. 2) Equipment with a cost price of R10 000, was sold for cash on 31 August 2019 for R2 000. The accumulated depreciation on the equipment sold amounted to R7 000 on 01 March 2019. 3) Depreciation is calculated on equipment at 10% per annum on cost. 4) Depreciation is calculated on vehicles at 20% per annum on the diminishing balance.
- The following trial balance was extracted from the ledger of Juliana at 31 December 2020. Juliana Trial Balance as at 31 December 2020 RM RMLand at cost 26,000Plant at cost 83,000 Accumulated Depreciation at 1 January 2020- Plant 13,000Office Equipment 33,000Accumulated Depreciation at 1 January 2020Office Equipment 8,000Receivables 198,000Payables 52,000Sales 763,000Purchases…A computer is sold on 1 June 2022. The details are as follows: (i) Cost $11,000 (being $10,000 plus $1000 GST) (ii) Accumulated Depreciation 1/7/2021 $4,000 (iii) Depreciation Method - Prime cost, 24% (iv) Consideration/sale proceeds of $3,000 (GST excl) which has been posted already from client to the computer asset account and has to be re-allocated). Prepared the required entries to correctly accouny for the disposal including depreciation up to the time of sale.On 01 March 2021 , old equipment with a useful life of six years was sold for R3000 cash . The cost price of equipment sold was R12000 and the accumulated depreciation on it amounted to R10000 on 01 March 2021 Depreciation is calculated using the straight line method. Depreciation on the remaining amounted to R48000 on 28 February 1. Prepare the asset disposal account in the general ledger. Close off the account . 2. Calculate the balance in accumulated depreciation for equipment account as at 28 February 2022. 3. calculate The profit or loss on the disposal, if the equipment was sold 28 February 2022
- On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO 56,000. As of January 1, 2020, it had accumulated depreciation of RO 35,000. Prepare the journal entry to record the sales of the Machine Select one: О. 15,000 35,000 Cash Accumulated Depreciation Loss on disposal of Machine Machine 6,000 56,000 O b. Accumulated Depreciation 35,000 Equipment 35,000 O c. Truck 56,000 直。 كتب هنا ل لبحثDuring the year ended 30 June 2020, machinery worth RM20,000 and motor vehicles worth RM60,000 were purchased by cheques. The machinery was depreciated at 10% per annuum using the straight line method and the motor vehicles at 20% per year using the reducing balance method. Required:Show the following for the year 2020:a) Machinery accountb) Motor vehicles accountc) Accumulated depreciation accounts for machinery and motor vehicles respectivelyd) Statement of Financial Position (extract) as at 30 June 2020The following are balances brought forward from 31 December 2018 for KC Deco Center : RM RM Motor Vehicles 100,000 Less : Provision for depreciation (20,000) 80,000 The motor vehicles were depreciated at 15% per annum using reducing balance method. KC bought a new vehicle on 1 October 2019, cost of the new vehicle was RM120,000. You are required to prepare the following accounts for financial year ending 31 December 2019 : i. The Motor Vehicle Account ii. The Provision for Depreciation Account
- These are the books of Mica Stores as at 28 February 2021.Vehicles R300 000, Accumulated depreciation R50 000. Depreciation is calculated at 10%on cost. An old vehicle was disposed on 31 August 2019 at R20 000 cash.The vehicle originally costed R25 000 and the Accumulated depreciation is R 3 000.Depreciation for the disposed vehicle isOn January 1, 2020, Mustafa Sultan Company sold printer for RO10,000 cash. The printer originally cost RO 35,000. As of January 1, 2020, it had accumulated depreciation of RO 32,000. Prepare the journal entry to record the sales of the printer Select one: O a. Truck 35,000 Gain on disposal of truck 7,000 cash 10,000 Accumulated Depreciation 32,000 O b. 35,000 Accumulated Depreciation Equipment 35,000 C. Accumulated Depreciation 32,000 ill lis iSI 直 0Neptune Trading bought a new motor vehicle worth RM350,000 on 1 January 2019. The motor vehicle is to be depreciated at the rate of 10% per annum using the reducing balance method. Question:Prepare the following relating to the above motor vehicle for the years ended 31 December 2019 and 2020.Motor vehicle accountDepreciation accountAccumulated depreciation account