exam pack from 2015 to 2017.pdf

¾ the capital is determined using the basic

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¾ The capital is determined using the basic accounting equation if the assets and liabilities are given: Assets = Equity + Liabilities R104 680 = Equity + R31 000 Equity = R104 680 – R31 000 = R73 680 145 | P a g e
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FAC1502 2014 146 | P a g e
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FAC1502 2014 147 | P a g e
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FAC1502 2014 SOLUTION 4: GENERAL LEDGER ACCOUNTS AND PROPERTY, PLANT AND EQUIPMENT 4.1 CAMP DEALERS CALCULATION OF DEPRECIATION FOR MACHINERY AND FOR EQUIPMENT FOR THE YEAR ENDED 28 FEBRUARY 2013 Depreciation for Machinery R Old and Existing Machinery [10% x (R220 000 – R50 000)] Old and sold Machinery (R50 000 x 10% x 3/12) New Machinery (R47 000 x 10% x 9/12) 17 000 1 250 3 525 Total Depreciation on machinery 21 775 Depreciation for Equipment R Old Equipment [10% x (R70 000 – R7 000)] New Equipment – purchased 31 May 2012 (10% x R56 400 x 9/12) New Equipment – purchased 01 Feb 2013 (10% x R36 000 x 1/12) 6 300 4 230 300 Total Depreciation on machinery 10 830 Total Depreciation for the year R Depreciation for Machinery 21 775 Depreciation for Equipment 10 830 Total Depreciation 32 605 NOTES Depreciation on Machinery ¾ The old and existing machinery is depreciated for the whole year. ¾ The old and sold machinery is depreciated from the beginning of the year (1 March 2012) to date of sale (31 May 2012) – 3 months. ¾ New equipment is depreciated as from the date of purchase (31 May 2012) up to the end of the year ( 28 February 2013) – 9 months. May is not counted since it is assumed that the assets were bought on the last day of the month. 148 | P a g e
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FAC1502 2014 Depreciation on Equipment ¾ Old equipment is depreciated for the whole year. ¾ New equipment purchased on 31 May 2012 is depreciated from the date of purchase (31 May 2012) up to the end of year (28 February 2013) – 9 months. ¾ New equipment purchased on 1 February 2013 is depreciated from the date of purchase up to the end of the year (28 February 2013) – 1 month. NB The date given in the CPJ (31 May 2012) is assumed as the date of the transaction. The machinery and equipment appearing in the Cash Payments Journal represents assets bought for cash on the given date. 4.2.1. CAMP DEALERS GENERAL LEDGER Date Details Folio Amount Date Details Folio Amount R R Machinery at Cost Account 2012 Mar 1 May 12 2013 Mar 1 Balance Bank Balance b/d CPJ 220 000 47 000 2012 May 12 2013 Feb 28 Asset Realisation Balance GJ c/d 50 000 217 000 267 000 267 000 217 000 NOTES ¾ All assets bought are debited in the asset account at cost as they increase our assets. ¾ All assets sold are credited in the asset account at cost as they reduce the value of the assets on hand. 4.2.1. CAMP DEALERS GENERAL LEDGER Date Details Folio Amount Date Details Folio Amount R R Equipment at Cost Account 2012 Mar 1 May 31 2013 Feb 1 2013 Mar 1 Balance Bank Creditors Control/ AZH Design Balance b/d CPJ GJ 70 000 56 400 36 000 2013 Feb 28 Balance c/d 162 400 0 162 400 162 400 162 400 NOTES ¾ The equipment shown in the General Journal represents equipment bought on credit. 149 | P a g e
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FAC1502 2014 4.2.3. CAMP DEALERS GENERAL LEDGER Date Details Folio Amount Date Details Folio Amount R R Accumulated Depreciation: Machinery Account 2012 May 31 2013 Feb 28 Asset Realisation ( C1 ) Balance GJ c/d 6 250 37 525 2012 Mar 1 May 31 2013 Feb 28 Mar 1 Balance Depreciation (see 4.1) Depreciation (see 4.1: R17 000 + R3 525) Balance b/d GJ
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