Calculate the missing amounts denoted by (a) to (e) - NSC Accounting - Question 3 - 2017 - Paper 1

The total depreciation on vehicles consists of both new and old vehicles. For the new vehicles:

• Depreciation for new vehicles = 422,550 imes rac{20}{100} imes rac{6}{12} = R42,255.

For the old vehicles:

• The old vehicles have a cost of R350,000. Total depreciation for old vehicles calculated as follows:
• Depreciation = 350,000 imes rac{20}{100} = R70,000. Hence, the total depreciation is:

$$ext{Total depreciation} = R42,255 + R70,000 = R112,255$$

The carrying value of vehicles on 28 February 2017 can be calculated from the accumulated cost and total depreciation. Let:

• Cost of Vehicles = R422,550,
• Total depreciation = R112,255. Hence:

$$ext{Carrying value} = R422,550 - R112,255 = R310,295$$

To calculate the carrying value of Equipment on 31 December 2016, we consider the cost ($120,000$) and subtract accumulated depreciation ($10,800$). Thus:

$$ext{Carrying value} = R120,000 - R10,800 = R109,200$$

We will sum the carrying values of Land and Buildings, Vehicles, and Equipment:

• Carrying value of Land and Buildings = R2,550,000,
• Carrying value of Vehicles = R310,295,
• Carrying value of Equipment = R109,200. Hence:

$$ext{Total carrying value of fixed assets} = R2,550,000 + R310,295 + R109,200 = R2,969,495$$