Texts:
Question 1:
If the cost of an asset is R100,000, and the accumulated depreciation up to the end of the first year is R15,000, then the depreciation amount at a rate of 20% using the reducing balance method, for the second financial year will amount to?
Question 2:
If an asset was purchased for R68,000 on 1/5/2023 and the financial year end is 31/12/2023, then if the asset is depreciated over 3 years, the current year depreciation will be?
Question 3:
Yello Stores, a registered VAT vendor, bought furniture for R99,864 inclusive of VAT on 31 July 2021. It was decided to depreciate the furniture at 20% per annum according to the straight-line method. At the end of the financial year ending 28 February 2022, Yello Stores will record the following accounting entries:
a. Debit Depreciation expense R8,760; Credit Accumulated depreciation R8,760
b. Debit Depreciation expense R11,651; Credit Accumulated depreciation: Furniture R11,651
c. Debit Depreciation expense R10,220; Credit Accumulated depreciation: Furniture R10,220
d. Credit Depreciation expense R8,760; Debit Accumulated depreciation: Furniture R8,760.