Fixed assets and disposal

This topic covers fixed assets: cost price, depreciation, carrying value, and the profit or loss when an asset is sold or traded in. The 4 questions here are worth 16 marks in the November 2024 Paper 1 set. Of the 16 marks, 14 are for the correct final answer and 2 for method and working. Show the calculation for each asset.

The 2024 Diagnostic Report says candidates used the wrong depreciation period, and applied a depreciation rate to equipment that had none. The trade-in value was used in a vehicle’s cost price instead of its original cost, and trade-ins were muddled in the profit or loss on sale. In the audit questions, candidates did not name the evidence for property and equipment and made no comparison with the fixed asset register. List the dates of each purchase and sale first, then work out the period.

Where marks are lost: in our words, from Department of Basic Education, NSC 2024 Diagnostic Report, Part 1 (Book 1).