Fixed Asset Report

1073 WordsMay 21, 20135 Pages
This fixed asset will give insight for Longhaul Carriers, owned by Jimmy Mavela. Longhaul Carriers is a transport company that transport goods between Durban and Johannesburg. The company has three heavy-duty trucks and employs three drivers who either work day or night shifts. This report will cover fair remuneration for drivers, working hours, maximise earnings, profitability and effective control for the future of Longhaul Carriers. Fair remuneration for drivers Calculations:Drivers remuneration per round trip x Average number of round trips made per week / Average number of hours each round trip takes | Truck 1:500 x 4 =R2000/15=R133.33 p/h | Truck 2:450 x 7=R3150/10=R315 p/h | Truck 3:550 x 6=R3300/13=R253.85 p/h | According…show more content…
I would advise Jimmy to sell his third truck and just work with the two trucks because this is just bringing a loss to Longhaul Carriers. Effective control for the future Fixed assets represent a large amount of funding so it is important to have controls in place to ensure they are used properly and for the purposes of the organisation. * Jimmy’s fixed assets should be correctly recorded, secured and properly maintained. * Acquisitions and disposals of fixed assets should be properly authorised. * Acquisitions and disposals of fixed assets should take place at the best price possible. * Fixed assets should be properly recorded, appropriately depreciated, and written down where necessary. * Annual capital expenditure budgets They should be prepared by someone directly responsible to the board. If acceptable, they should be agreed by the board and minuted. * Applications for authority to incur capital expenditure These should be submitted to the board for approval and should contain reasons for the expenditure and estimated cost. A document should show what is to be acquired, and be signed as authorised by the board or an authorised official. * Register of fixed assets A register of fixed assets should be maintained for each major group of assets.
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