Mr A is the owner of All Stars General Dealer ASSET CATEGORY COST PRICE DATE PURCHASED DEP METHOD RATE OF DEPRECIATION Photocopier Equipment 5000 1 March 2017 Straight line 10% Machine Machinery 20000 30 Sept 2018 Diminishing Balance 20% Hilux Bakkie Vehicle 200000 1 December 2019 Diminishing Balance 25% Furniture Furniture 80000 1 July 2016 Straight line 33.33% The depreciation for all fixed assets for the year ending 31 March 2021 Journalise the depreciation at 31 March 2021 Draw up and balance the following ledger accounts as at 31 March 2021: Equipment Vehicles Furniture

Mr A is the owner of All Stars General Dealer ASSET CATEGORY COST PRICE DATE PURCHASED DEP METHOD RATE OF DEPRECIATION Photocopier Equipment 5000 1 March 2017 Straight line 10% Machine Machinery 20000 30 Sept 2018 Diminishing Balance 20% Hilux Bakkie Vehicle 200000 1 December 2019 Diminishing Balance 25% Furniture Furniture 80000 1 July 2016 Straight line 33.33% The depreciation for all fixed assets for the year ending 31 March 2021 Journalise the depreciation at 31 March 2021 Draw up and balance the following ledger accounts as at 31 March 2021: Equipment Vehicles Furniture

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.7E

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QUESTION 1

Mr A is the owner of All Stars General Dealer

ASSET	CATEGORY	COST PRICE	DATE PURCHASED	DEP METHOD	RATE OF DEPRECIATION
Photocopier	Equipment	5000	1 March 2017	Straight line	10%
Machine	Machinery	20000	30 Sept 2018	Diminishing Balance	20%
Hilux Bakkie	Vehicle	200000	1 December 2019	Diminishing Balance	25%
Furniture	Furniture	80000	1 July 2016	Straight line	33.33%

The depreciation for all fixed assets for the year ending 31 March 2021
Journalise the depreciation at 31 March 2021
Draw up and balance the following ledger accounts as at 31 March 2021:
1. Equipment
2. Vehicles
3. Furniture
Calculate the carrying value of all assets as at 31 March 2021

Required:
Below is the asset register of All Stars General Dealer

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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