Question 2 A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on 31 December 2020 (Year-end) is sold on the 31 March 2021 for R45 000 to Mr Hamilton. It was agreed that he would pay 50% in cash and the balance on the 30 June 2021. Depreciation is written off at 20% per annum using the diminishing balance method. The entity is not registered for VAT. Required: Prepare all the journal entries to record the disposal of the vehicle on 31 March 2021. Journal narrations are required. Document numbers are not required.
Question 2 A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on 31 December 2020 (Year-end) is sold on the 31 March 2021 for R45 000 to Mr Hamilton. It was agreed that he would pay 50% in cash and the balance on the 30 June 2021. Depreciation is written off at 20% per annum using the diminishing balance method. The entity is not registered for VAT. Required: Prepare all the journal entries to record the disposal of the vehicle on 31 March 2021. Journal narrations are required. Document numbers are not required.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 7P: Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset,...
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Question 2 please
![Question 2
A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on
31 December 2020 (Year-end) is sold on the 31 March 2021 for R45 000 to Mr Hamilton. It was
agreed that he would pay 50% in cash and the balance on the 30 June 2021. Depreciation is written
off at 20% per annum using the diminishing balance method. The entity is not registered for VAT.
Required:
Prepare all the journal entries to record the disposal of the vehicle on 31 March 2021.
Journal narrations are required. Document numbers are not required.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20230ca5-df8a-4289-adfb-82e943df112f%2Fb4a92952-8e80-4dcc-b90f-aee240ec9e10%2Fvfhfnpl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2
A vehicle which cost R100 000 and on which the accumulated depreciation is R60 000 on
31 December 2020 (Year-end) is sold on the 31 March 2021 for R45 000 to Mr Hamilton. It was
agreed that he would pay 50% in cash and the balance on the 30 June 2021. Depreciation is written
off at 20% per annum using the diminishing balance method. The entity is not registered for VAT.
Required:
Prepare all the journal entries to record the disposal of the vehicle on 31 March 2021.
Journal narrations are required. Document numbers are not required.
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