AVENGERS LTD The information relates to the financial year ended 31 March 2020 - NSC Accounting - Question 4 - 2020

To find the missing amounts:

(i) Cost of Land and Buildings at Beginning of Year:

• We know the carrying value at the end is R9 650 000 and deductions include additions of R625 000 and disposals of R850 000 to find: $ext{Cost} = ext{Carrying Value} + (850000 + 625000) = 9,650,000 + 1,475,000 = R10,500,000$

(ii) Depreciation of Vehicles for the Year:

• For new vehicles purchased: ext{Depreciation} = 625,000 imes 20rac{ ext{p.a.}}{100} = R125,000
• For old vehicles: ext{Depreciation} = 1,281,000 imes 20rac{ ext{p.a.}}{100} = R256,200
• Total Depreciation = R125,000 + R256,200 = R381,200.

(iii) Disposal of Equipment:

• Equipment cost R21 000 was sold; accumulated depreciation by end: R15 000.
• Hence, Disposal Amount = Cost - Accumulated Depreciation = 21,000 - 15,000 = R6,000.

(iv) Accumulated Depreciation of Equipment:

• Remaining depreciation as of March 31, 2020: ext{Equipment Cost} = R21,000, ext{Depreciation per year} = 15rac{ ext{p.a.}}{100} = R3,150.
• Total depreciation from past = R15,450.