SharpkopAccounting P1 · Fixed assets and disposal
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Mabuza Traders Ltd depreciates vehicles at 20% p.a. on the carrying value (diminishing balance method). The financial year ends on 28 February 2025.
Vehicle information:
1. A new vehicle costing R400 000 was bought on 1 September 2024.
2. An old vehicle was traded in on 1 September 2024. It had cost R300 000 and its accumulated depreciation on 1 March 2024 was R90 000.
3. The carrying value of the remaining vehicles on 1 March 2024 was R450 000. There were no other changes during the year.
1.1.35 marks
Calculate the total depreciation on vehicles for the year ended 28 February 2025.
NSCBased on Nov 2024 · Paper 1 · Q1.1.3
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