11. Mavron Ple owned the following motor vehicles as at 1 April 2015: Motor Vehiele Date acquired 1 October 2012 1 April 2013 Cost Estimated residual value Estimated Life ¢15,500 ¢20,000 AAT 101 $4,500 Syrs 9yrs DJH 202 $2,000 Maxron Ple's policy is to provide at the end of each financial year, depreciation using the straight line method applied on a month-by-month basis on all motor vehicles used during the year. During the financial year ended 31 March 2016 the following occurred: On 30 June 2015 AAT 101 was traded in and replaced by KGC 303. The trade-in allowance was ¢5000. KGC 303 cost ¢15,000 and the balance due (after deducting the trade-in allowance) was paid partly by a loan of ¢6,000 from Pinot Finance. KGC 303 is expected to have a residual value ¢4,000 after an estimated economic life of Syears. The estimated remaining economic life of DJH 202 was reduced from 6 years to 4 years with no change in the estimated residual value. Required: Reconstruct the Motor Vehicles Account and the Provision for Depreciation Account for the year ended 31" March 2016. Show the necessary calculations necessary. What is Depreciation?" List and explain (3) three methods of Depreciation a) b)

11. Mavron Ple owned the following motor vehicles as at 1 April 2015: Motor Vehiele Date acquired 1 October 2012 1 April 2013 Cost Estimated residual value Estimated Life ¢15,500 ¢20,000 AAT 101 $4,500 Syrs 9yrs DJH 202 $2,000 Maxron Ple's policy is to provide at the end of each financial year, depreciation using the straight line method applied on a month-by-month basis on all motor vehicles used during the year. During the financial year ended 31 March 2016 the following occurred: On 30 June 2015 AAT 101 was traded in and replaced by KGC 303. The trade-in allowance was ¢5000. KGC 303 cost ¢15,000 and the balance due (after deducting the trade-in allowance) was paid partly by a loan of ¢6,000 from Pinot Finance. KGC 303 is expected to have a residual value ¢4,000 after an estimated economic life of Syears. The estimated remaining economic life of DJH 202 was reduced from 6 years to 4 years with no change in the estimated residual value. Required: Reconstruct the Motor Vehicles Account and the Provision for Depreciation Account for the year ended 31" March 2016. Show the necessary calculations necessary. What is Depreciation?" List and explain (3) three methods of Depreciation a) b)

Name: 11. Mavron Ple owned the following motor vehicles as at 1 April 2015:
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Description: 11. Mavron Ple owned the following motor vehicles as at 1 April 2015:Date acquired1 October 20121 April 2013Motor VehicleCost Estimated residual value Estimated Life¢15,500¢20,000AAT 101¢4,500$2,000SyrsDJH 2029yrsMavron Ple's policy is to provide at

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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