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

The total depreciation on vehicles can be calculated using both new and old methods:

1. New Vehicles:

   • New Depreciation Rate = 20%
   • Cost = R 422,550
   • Depreciation = 422,550 imes rac{20}{100} imes rac{6}{12} = R 42,255

2. Old Vehicles:

   • Original Cost = R 350,000
   • Write-off Amount = R 34,999
   • Depreciation = 35,000 imes rac{20}{100} = R 7,000

Combining both gives:

Total Depreciation = R 42,255 + R 7,000 = R 49,255

To determine the carrying value of Vehicles, we subtract total depreciation from the original cost:

Original Cost of Vehicles = R 422,550 + R 35,000 = R 457,550

Total Depreciation on Vehicles = R 49,255

Carrying Value = $457,550 - R 49,255 = R 408,296$

To calculate the carrying value of Equipment sold, we consider the cost and any accumulated depreciation. Given:

Cost of Equipment = R 120,000 Accumulated Depreciation = $R 10,800 + R 8,100 = R 18,900$

Thus, the Carrying Value Sold:

$ext{Carrying Value} = R 120,000 - R 18,900 = R 101,100$

To find the total carrying value of fixed assets, sum the carrying values of all asset types:

Fixed Assets (carrying values):

• Land & Buildings = R 2,550,000
• Vehicles = R 408,296
• Equipment = R 50,994

Thus:

$ext{Total Fixed Assets} = R 2,550,000 + R 408,296 + R 50,994 = R 2,989,290$