b. XYZ (Pty) Ltd commenced business on 1st January 2014. On that day, XYZ (Pty) Ltd...
b. XYZ (Pty) Ltd commenced business on 1st January 2014. On that
day, XYZ (Pty)
Ltd bought equipment on credit from CCC equipment (Pty) Ltd at P85
000. The
equipment will be used for 5 years and the estimated value at the
end of the 5
years is P25, 000. Calculate the depreciation for the equipment at
10% for the first
three years using the reducing balance method. (5 marks)
Homework Answers
Reducing balance method of depreciation
(Amount in P)
| Year | Opening WDV | Depreciation | Closing WDV |
| 1 | 85,000 | 6,000 | 79,000 |
| 2 | 79,000 | 5,400 | 73,600 |
| 3 | 73,600 | 4,860 | 68,740 |
| Rate of Depreciation | 10% | ||
| Useful Life | 5 | ||
| Residual Value | 25000 | ||
| WDV | Written Down Value | ||
--
Formula:
--
Hope you Understood.
If you have any doubt please leave a comment.
Thank you.
Add Answer to:
b. XYZ (Pty) Ltd commenced business on 1st January 2014. On that
day, XYZ (Pty)
Ltd...
1. On 1 January 2014 Tom Sirocco, a friend of yours, commenced in business. Tom is...
1. On 1 January 2014 Tom Sirocco, a friend of yours, commenced in business. Tom is having trouble nding the accounting process and has asked you for advice. You examine his books. During the year ended 31 December 2014 the following transactions occurred: Lodgement by Tom on 1 January 2014 of €120,000 of his savings into the business bank account. Purchase of equipment by cheque €80,000. Purchases of stock on credit €200,000. Sales on credit €370,000. Payments to creditors for...
You are working as the accountant for the company Jailbreak Pty Ltd. Jailbreak Pty Ltd produces...
You are working as the accountant for the company Jailbreak Pty Ltd. Jailbreak Pty Ltd produces bolt cutters, a tool used for cutting chains, padlocks, bolts and wire mesh. When starting up in 2012, the following transactions took place in relation to the start- up of the operations: • 1 September 2012, Jailbreak Pty Ltd bought the machinery for $575,000 cash. In order to get the machinery ready to be used, Jailbreak Pty Ltd spent an additional $75,000 cash to...
That's full question. QUESTION TWO a. Gawucho Furniture Manufacturing Company (Gawucho) commenced business on 1st January,...
That's full question.
QUESTION TWO a. Gawucho Furniture Manufacturing Company (Gawucho) commenced business on 1st January, 2019, preparing account to 31" December each year. The accountant of the business has provided you with the below information. Assets Note Original Cost (GHC) Furniture 424,000 Plywood 2 130,000 Motor Vehicle 3 350,000 Plant and Machinery 4 100,000 Total Assets 1,004,000 Additional Information 1. The Furniture was produced on 1st March, 2019 for sales but Gawucho used GH¢ 20,000 of these Furniture in...
James Barbers Pty Ltd purchases a new equipment on 1 January 2015. The equipment cost was...
James Barbers Pty Ltd purchases a new equipment on 1 January 2015. The equipment cost was $200,000 and useful life was 10 years with zero residual value. On January 1, 2019, the company decides that the equipment will last total 20 years rather than 10 years. The company uses straight-line method of depreciation and the fiscal year end is 31 December. 1. a. Calculate depreciate for 2015, 2016, 2017 and 2018. b. How will the equipment be reported on the...
A business has a financial year end of 31 December. An equipment is bought for $40,000...
A business has a financial year end of 31 December. An equipment is bought for $40,000 on 1 January 2020. It is to be depreciated at the rate of 30% using the Reducing Balance Method. You are required to show records for the first three (3) years for the following: Equipment Account (2 marks) Accumulated Provision for Depreciation: Equipment (9 marks) Profit and Loss Account (6 marks) Extract from the Statement of Profit or Loss for the years ending 31...
Use the information below to answer the following questions XYZ commenced operations on January 1st 2013...
Use the information below to answer the following questions XYZ commenced operations on January 1st 2013 The unadjusted Trial Balance for the first year of operations is given below XYZ limite d Unadjusted Trial Balance for the year ended 12/31/2013 Cash Supplies Accounts receivable Equipment Notes Payable Contributed Capital Revenue Wages Expenses Other Expenses Total 30,000 10,000 30,000 80,000 60,000 40,000 100,000 40,000 10,000 200,000 200,000 Notes: Supplies as at 12/31/2013 was determined to be $2,000 Equipment was purchased on...
PART C [2 marks] Shania Twain Ltd had purchased equipment on 1 January 2020 at a...
PART C [2 marks] Shania Twain Ltd had purchased equipment on 1 January 2020 at a cost of $200,000. The equipment had a useful life of 6 years and an estimated residual of $35,000. The company decided to use the reducing balance method of depreciation at 30% per annum. Calculate the depreciation and prepare the necessary journal entry for the year ended 31 December 2021
(15) QUESTION 3 (IAS 16) Fire Ltd commenced in 2019 with the manufacturing of wood products...
(15) QUESTION 3 (IAS 16) Fire Ltd commenced in 2019 with the manufacturing of wood products at a new plant. The plant was purchased on 1 January 2019 for $700 000. During January 2019, some equipment was installed and other equipment was modified. Installation and modification cost amounted to $130 000. For security reasons a fence was erected at the plant at a cost of $20 000. The plant was ready for use on 1 February 2019. An opening function...
On the 1st January in Year 1, an unlimited liability business called AFB commenced business life....
On the 1st January in Year 1, an unlimited liability business called AFB commenced business life. The business deals in buying and reselling useless items. Below is what happened in summary in its first year: 1. On 1 January it started business. Its owners injected £260,000 capital. It also obtained a 5 year bank loan of £150,000 at an annual interest rate of 18%. The total proceeds were placed in the business bank account. 2. Distribution and administration expenses totalled...
QUESTION 2 Pusher commenced business on 1 January 2010 with two (2) lorries - A (costs...
QUESTION 2 Pusher commenced business on 1 January 2010 with two (2) lorries - A (costs £1,000) and B (costs £1,600). On March 3, 2011 - A was written off in an accident and Pusher received £750 from insurance company. This vehicle was replaced on 10 March 2011 by C which costs £2,000. A full year's depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal. Instructions: a. You are required to...
1. On 1 January 2014 Tom Sirocco, a friend of yours, commenced in business. Tom is having trouble nding the accounting process and has asked you for advice. You examine his books. During the year ended 31 December 2014 the following transactions occurred: Lodgement by Tom on 1 January 2014 of €120,000 of his savings into the business bank account. Purchase of equipment by cheque €80,000. Purchases of stock on credit €200,000. Sales on credit €370,000. Payments to creditors for...
That's full question.
QUESTION TWO a. Gawucho Furniture Manufacturing Company (Gawucho) commenced business on 1st January, 2019, preparing account to 31" December each year. The accountant of the business has provided you with the below information. Assets Note Original Cost (GHC) Furniture 424,000 Plywood 2 130,000 Motor Vehicle 3 350,000 Plant and Machinery 4 100,000 Total Assets 1,004,000 Additional Information 1. The Furniture was produced on 1st March, 2019 for sales but Gawucho used GH¢ 20,000 of these Furniture in...
Use the information below to answer the following questions XYZ commenced operations on January 1st 2013 The unadjusted Trial Balance for the first year of operations is given below XYZ limite d Unadjusted Trial Balance for the year ended 12/31/2013 Cash Supplies Accounts receivable Equipment Notes Payable Contributed Capital Revenue Wages Expenses Other Expenses Total 30,000 10,000 30,000 80,000 60,000 40,000 100,000 40,000 10,000 200,000 200,000 Notes: Supplies as at 12/31/2013 was determined to be $2,000 Equipment was purchased on...
PART C [2 marks] Shania Twain Ltd had purchased equipment on 1 January 2020 at a cost of $200,000. The equipment had a useful life of 6 years and an estimated residual of $35,000. The company decided to use the reducing balance method of depreciation at 30% per annum. Calculate the depreciation and prepare the necessary journal entry for the year ended 31 December 2021
(15) QUESTION 3 (IAS 16) Fire Ltd commenced in 2019 with the manufacturing of wood products at a new plant. The plant was purchased on 1 January 2019 for $700 000. During January 2019, some equipment was installed and other equipment was modified. Installation and modification cost amounted to $130 000. For security reasons a fence was erected at the plant at a cost of $20 000. The plant was ready for use on 1 February 2019. An opening function...
On the 1st January in Year 1, an unlimited liability business called AFB commenced business life. The business deals in buying and reselling useless items. Below is what happened in summary in its first year: 1. On 1 January it started business. Its owners injected £260,000 capital. It also obtained a 5 year bank loan of £150,000 at an annual interest rate of 18%. The total proceeds were placed in the business bank account. 2. Distribution and administration expenses totalled...
QUESTION 2 Pusher commenced business on 1 January 2010 with two (2) lorries - A (costs £1,000) and B (costs £1,600). On March 3, 2011 - A was written off in an accident and Pusher received £750 from insurance company. This vehicle was replaced on 10 March 2011 by C which costs £2,000. A full year's depreciation is charged in the year of acquisition and no depreciation is charged in the year of disposal. Instructions: a. You are required to...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 15 minutes ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 2 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 2 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 4 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 4 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 4 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 4 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 4 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 4 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 4 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 4 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 4 hours ago