kylark Enterprises Ltd ('Skylark Enterprises'), a manufacturing firm, has a fiscal yearend of 31 December. The company utilises the straight-line method of depreciation and has adopted a residual value of 10% for all its assets. The estimated useful life for their machinery is 10 years. The following transactions occurred during the 2023 year: 1. 2 January 2023: Skylark Enterprises purchased machinery worth R500 000. This cost does not include installation and transportation costs, which amounted to R20 000. The machine was ready for use as of 2 January 2023. 2. 1 July 2023: Skylark Enterprises sold one of its old machines that had been purchased on 1 January 2018. The machine had a cost of R 180 000, and it was sold for R60 000. The company recorded a loss on the disposal. The cash payment was received on the same day. 3. 1 November 2023: Skylark Enterprises purchased another machine for R400 000. However, it was only available for use from 1 December 2023. The company's ledger showed the following balances at 1 January 2023: Description Amount (R) Machinery - Cost 800 000 Accumulated Depreciation - Machinery 200 000 9 HFAC130 - 1-Jul- Dec2023 - SA1 - LVN-20230821 - V2 REQUIRED: Prepare the general ledger accounts for the year ended 31 December 2023 of Machinery Cost and Accumulated Depreciation of Machinery Instructions: You must close off/ carry forward the account at year-end. Show workings and reference your workings for calculations.
kylark Enterprises Ltd ('Skylark Enterprises'), a manufacturing firm, has a fiscal yearend of 31 December. The company utilises the straight-line method of depreciation and has adopted a residual value of 10% for all its assets. The estimated useful life for their machinery is 10 years. The following transactions occurred during the 2023 year: 1. 2 January 2023: Skylark Enterprises purchased machinery worth R500 000. This cost does not include installation and transportation costs, which amounted to R20 000. The machine was ready for use as of 2 January 2023. 2. 1 July 2023: Skylark Enterprises sold one of its old machines that had been purchased on 1 January 2018. The machine had a cost of R 180 000, and it was sold for R60 000. The company recorded a loss on the disposal. The cash payment was received on the same day. 3. 1 November 2023: Skylark Enterprises purchased another machine for R400 000. However, it was only available for use from 1 December 2023. The company's ledger showed the following balances at 1 January 2023: Description Amount (R) Machinery - Cost 800 000 Accumulated Depreciation - Machinery 200 000 9 HFAC130 - 1-Jul- Dec2023 - SA1 - LVN-20230821 - V2 REQUIRED: Prepare the general ledger accounts for the year ended 31 December 2023 of Machinery Cost and Accumulated Depreciation of Machinery Instructions: You must close off/ carry forward the account at year-end. Show workings and reference your workings for calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:kylark Enterprises Ltd ('Skylark Enterprises), a manufacturing firm, has a fiscal yearend of 31 December. The company
utilises the straight-line method of depreciation and has adopted a residual value of 10% for all its assets. The estimated
useful life for their machinery is 10 years. The following transactions occurred during the 2023 year: 1. 2 January 2023:
Skylark Enterprises purchased machinery worth R500 000. This cost does not include installation and transportation
costs, which amounted to R20 000. The machine was ready for use as of 2 January 2023. 2. 1 July 2023: Skylark
Enterprises sold one of its old machines that had been purchased on 1 January 2018. The machine had a cost of R
180 000, and it was sold for R60 000. The company recorded a loss on the disposal. The cash payment was received on
the same day. 3. 1 November 2023: Skylark Enterprises purchased another machine for R400 000. However, it was only
available for use from 1 December 2023. The company's ledger showed the following balances at 1 January 2023:
Description Amount (R) Machinery - Cost 800 000 Accumulated Depreciation - Machinery 200 000 9 HFAC130-1-Jul-
Dec2023 - SA1 - LVN-20230821 - V2 REQUIRED: Prepare the general ledger accounts for the year ended 31 December
2023 of Machinery Cost and Accumulated Depreciation of Machinery Instructions: You must close off/ carry forward
the account at year-end. • Show workings and reference your workings for calculations.
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