100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Exam preparation, financial accounting . question & answer R50,00   Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of Limpopo (UL)
  4.  
  5. Introduction to accounting (CACCO12)

Exam (elaborations)

Exam preparation, financial accounting . question & answer
 22 views  0 purchase

This is a question and answer for property,plant and equipment, it mainly deals with depreciation

Preview 1 out of 4  pages

Document information

  • January 20, 2021
  • 4
  • 2020/2021
  • Exam (elaborations)
  • Questions & answers

Subjects

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

All for this textbook (4)

Written for

All documents for this subject (3)

Seller

avatar-seller
benerlyngwanamonama

Content preview

Property, plant & equipment
Costa Plenty Manufacturers
Costa Plenty Manufacturers Ltd is a company that manufactures and distributes plastic
water bottles across South Africa. The entity is registered for VAT and so are all entities
trading with it. VAT is levied at 15%. The financial year end of the company is 30 June. You
have been requested to assist with the finalisation of the non-current asset section of the
statement of financial position for the year ended 30 June 2016.


1. Delivery trucks
Costa Plenty Manufacturers purchased 3 delivery trucks at a total cost of R 770 040-00
(including VAT) on 30 November 2014. On 1 June 2016, Costa Plenty Manufacturers traded
one of the 3 delivery trucks in for R 180 550-00 (including VAT) on a new delivery truck. The
total purchase price of the new delivery truck amounted to R 373 750 (including VAT). The
balance of the purchase price was settled by EFT on 1 June 2016. The licensing fee of R 1
300-00 (no VAT) to register the truck as well as the insurance for the truck amounting to R
862-50 (including VAT) was paid on 22 June 2016. The new delivery truck was delivered to
Costa Plenty Manufacturers on 1 July 2016, together with the relevant VAT invoice.
Depreciation Policy:
- Delivery trucks are depreciated over their useful lives of 4 years.
- Delivery trucks have an estimated residual value of 20% on the cost of the delivery truck

REQUIRED:
Prepare ALL the relevant journal entries in respect of delivery vehicles as stated in the
above note, as from 1 July 2015. (Including ALL depreciation journals). (27 Marks)

- Show ALL calculations.
- Round all figures to the nearest Rand.
- Journals must be dated.
- Calculations MUST be cross referenced to the journals.
- Leave lines open between journals.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller benerlyngwanamonama. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

83225 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00
  • (0)
  Buy now