Gabriel Enterprises owns a fleet of motor vehicles. The following balances appeared in the general ledger on 01 March 2021, the beginning of the financial year Vehicles at cost R900 000 Accumulated depreciatio on vehicles R300 000 Additional information • On 31 August 2021, a vehicle that cost R150 000 was sold for R29 000 cash. The accumulated depreciation on this vehicle was R120 000 on 01 March 2021. • On 01 December 2021 a new vehicle was purchased for R200 000 cash. • Deprecation is provided for on vehicles at 20% per annum on the diminishing balance. Required Answe the following questions from the information given above. 3.1 Prepare the vehicles column in the Property, Plant and Equipment note attached to the Statement of Financial Position for the year ended 28 February 2022 for Swansea Enterprises. (15) 3.2 Prepare the Asset Disposal account in the general ledger.

Gabriel Enterprises owns a fleet of motor vehicles. The following balances appeared in the general ledger on 01 March 2021, the beginning of the financial year Vehicles at cost R900 000 Accumulated depreciatio on vehicles R300 000 Additional information • On 31 August 2021, a vehicle that cost R150 000 was sold for R29 000 cash. The accumulated depreciation on this vehicle was R120 000 on 01 March 2021. • On 01 December 2021 a new vehicle was purchased for R200 000 cash. • Deprecation is provided for on vehicles at 20% per annum on the diminishing balance. Required Answe the following questions from the information given above. 3.1 Prepare the vehicles column in the Property, Plant and Equipment note attached to the Statement of Financial Position for the year ended 28 February 2022 for Swansea Enterprises. (15) 3.2 Prepare the Asset Disposal account in the general ledger.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gabriel Enterprises owns a fleet of motor vehicles. The following balances appeared in the general ledger on 01 March 2021, the beginning of the financial year Vehicles at cost R900 000 Accumulated depreciation on vehicles R300 000 Additional information. On 31 August 2021, a vehicle that cost R150 000 was sold for R29 000 cash. The accumulated depreciation on this vehicle was R 120 000 on 01 March 2021. On 01 December 2021 a new vehicle was purchased for R200 000 cash. Deprecation is provided for on vehicles at 20% per annum on the diminishing balance. Required Answer the following questions from the information given above. 3.1 Prepare the vehicles column in the Property, Plant and Equipment note attached to the Statement of Financial Position for the year ended 28 February 2022 for Swansea Enterprises. 3.2 Prepare the Asset Disposal account in the general ledger.
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