Foster incorporated, a registered VAI vendor, bought a delivery vehicle on the day they opened the doors business on 1 November 20.1. The purchase price of the vehicle was R205 200, including VAT. They decided that the accounting date would be 31 October annually. On 1 November 20.4 the vehicle was sold to Hanrod Traders for R102 600 cash (including VAT). Receipt no. RC374 was issued. The following represents a detailed statement of depreciation charges on the vehicle from the date of purchase until the date of sale: Period of depreciation 1 Nov 20.1 - 31 Oct 20.2 1 Nov 20.2 - 31 Oct 20.3 1 Nov 20.3 31 Oct 20.4 Calculation R180 000 x 20% (R180 000 - 36 000) x 20% (R180 000 - 64 800) x 20% Depreciation R 36 000 R 28 800 R 64 800 R 23 040 R 87 840
Foster incorporated, a registered VAI vendor, bought a delivery vehicle on the day they opened the doors business on 1 November 20.1. The purchase price of the vehicle was R205 200, including VAT. They decided that the accounting date would be 31 October annually. On 1 November 20.4 the vehicle was sold to Hanrod Traders for R102 600 cash (including VAT). Receipt no. RC374 was issued. The following represents a detailed statement of depreciation charges on the vehicle from the date of purchase until the date of sale: Period of depreciation 1 Nov 20.1 - 31 Oct 20.2 1 Nov 20.2 - 31 Oct 20.3 1 Nov 20.3 31 Oct 20.4 Calculation R180 000 x 20% (R180 000 - 36 000) x 20% (R180 000 - 64 800) x 20% Depreciation R 36 000 R 28 800 R 64 800 R 23 040 R 87 840
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...
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Use the information at the top of this screen (next to Instructions) to complete the general ledger of Foster Incorporated:
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