QUESTION 5
The following information refers to Great Car Garage. Ignore VAT for this question.
The policy of the organisation is to depreciate all equipment at a rate of 10% per
annum using the diminishing balance method. Their financial year ends on
31 December 2018.
5.1 Use the extract from the asset register to complete the missing details
(indicated with question marks) in the ANSWER BOOK
NOTE: Round off to the nearest rand.
GREAT CAR GARAGE
Asset description: Still cabinets
Date purchased: 01 June 2016
Bought from: Barnet Ltd.
Cost Price: R15 000
General ledger account: Equipment
Depreciation method: 10% diminishing balance method
Date sold:
Sold to:
Depreciation
Date
1 June 2016
31 Dec. 2016
31 Dec. 2017
31 Dec. 2018
Cost
R15 000
Selling price:
Accumulated
depreciation
Carrying
amount
R15 000
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