OM/MAN2064/11/Sem2 2010/11. Section B: Answer only two questions Question 2 The statement of financial position of Toorak (a sole trader) at 31 st December 2009 shows vehicles as follows: Vehicles Less: depreciation Cost . 120,650 54,320 Net book value 66,330 Vehicles are depreciated using the straight line method over 5 years. The company's depreciation policy states that depreciation is to be charged pro rata to time in the year of acquisition but no charge should be made in the year of disposal. During the current year (to 3 I St December 2010) the following transactions took place: Additions: 31 January 2010 Purchased a lorry for E30,000 31 st March 2010 Purchased a van for El 2,000 30 June 2010 Purchased a car forÆ18,000 Disposals: 30 April 2010 Motor car sold for $2,000 - it cost $12,000 on 1 st August 2007 31 August 2010Lorry sold for E7,400 - it cost El 8,000 on 31 st May 2008 31 October 2010 van for E3,500 it cost E9,ooo on 30 th sept 2008 Required: (a) Complete the Cost, provision for depreciation and disposal accounts below showing your workings (show all your calculations to the nearest whole number) (16 marks) Dr Cost Account So geu 610 120650 1 0000 2814 Disposa 31/8 DISP 18000 31/10 Disp to 12000 31/12/10 BQ,-A 0 141657 18000, Cr 12000 9000 180657
OM/MAN2064/11/Sem2 180650 141650 5 2010/11 Question 1 continued WORKINGS OR QUESTION 1 AOJ03IV ??? 3?(? 0 Denn car Disposes Lorry 0??000 ???(0?????)802-0(?× 7 ??????? ? ??-0???0? 41 8311.0 ?00 -300?000×4004 1000 ?? 00 24000 000?20?? 00 ?0·0?CO + 900 · 0 S 800 6 31.12.09. .. . 000 x 0 × 20%×3 6 ( 12 2-7- ?0??? ? ? 50 ? 00 -08 14 L 60000 2 -- 0 ? ? 5500 Van ?? 000 20??× ?-00 18000 00 9-00
OM/MAN2064/11/Sem2 remainder. ? · 0?(??00?)00? q000) ? 20< - b330 4 2 . TOTAL DEPN CH? Ctc_? 0?4E 2010/11 2??30 Question 2 continued Dr 31 1 Provision for Depreciation Account Cr 10 Ec-Å S 1+320 10 12 Disposal DISP DQOV \ flere Z -sqso 0 BarCID Ceooo 79750 D -1 3014 cost 12000 DisposAccoun t r al 3014 Bank 2000 3014 Proun 5800 31/12 Ils loss 4200 3118 cost 18000 31/10 cost 9000 3118 Bank 7400 3118 proun 5700 LOSS 4900 Workings 31/10 Bank 3500 31/10 ProUn 2250 LOSS 3250 7975€ boon C 12000 18000 9000