The following balances appeared in the books of Santiago Traders on 1 March 2020: Land and Buildings 900 000 Vehicles 250 000 Machinery 200 000 Accumulated Depreciation on Vehicles ? Accumulated Depreciation on Machinery Additional information: A new building was purchased for cash on the 1t September 2020 for R1 000 000. The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of R120 000 was sold on the 31st October 2020 on credit to Miss Smith for R60 000. The vehicle was purchased on the 31 May 2018. Vehicle B was purchased on the 1 March 2019. Purchased a new delivery vehicle (Vehicle C) for R345 000 on credit from N&N Motors on 1 December 2020 All machinery was purchased on the 30 April 2017 The depreciation policy on non-current assets are as follows: Vehicles: 20% on cost using the straight-line method and no residual value Machinery: 10% per annum using the diminishing balance method and no residual value IGNORE VAT Santiago Traders has a 28 February year end Q.1.1 Journalise ALL the above transactions for the year ended 28 February 2021 in the General Journal including the year-end adjustment entries for depreciation. Round off to the nearest Rand Narrations are not required Q.1.2 If Santiago Traders wants to sell Vehicle C on 31 May 2021 and make a profit on sale of the vehicle, how much should Santiago Traders sell the vehicle for? Provide calculations to support your answer
The following balances appeared in the books of Santiago Traders on 1 March 2020: Land and Buildings 900 000 Vehicles 250 000 Machinery 200 000 Accumulated Depreciation on Vehicles ? Accumulated Depreciation on Machinery Additional information: A new building was purchased for cash on the 1t September 2020 for R1 000 000. The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of R120 000 was sold on the 31st October 2020 on credit to Miss Smith for R60 000. The vehicle was purchased on the 31 May 2018. Vehicle B was purchased on the 1 March 2019. Purchased a new delivery vehicle (Vehicle C) for R345 000 on credit from N&N Motors on 1 December 2020 All machinery was purchased on the 30 April 2017 The depreciation policy on non-current assets are as follows: Vehicles: 20% on cost using the straight-line method and no residual value Machinery: 10% per annum using the diminishing balance method and no residual value IGNORE VAT Santiago Traders has a 28 February year end Q.1.1 Journalise ALL the above transactions for the year ended 28 February 2021 in the General Journal including the year-end adjustment entries for depreciation. Round off to the nearest Rand Narrations are not required Q.1.2 If Santiago Traders wants to sell Vehicle C on 31 May 2021 and make a profit on sale of the vehicle, how much should Santiago Traders sell the vehicle for? Provide calculations to support your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following balances appeared in the books of Santiago Traders on 1 March 2020:
Land and Buildings
900 000
Vehicles
250 000
Machinery
200 000
Accumulated Depreciation on Vehicles
?
Accumulated Depreciation on Machinery
?
Additional information:
A new building was purchased for cash on the 1st September 2020 for R1 000 000.
The vehicles balance at 1 March 2020 consists of two vehicles. Vehicle A with a cost price of
R120 000 was sold on the 31st October 2020 on credit to Miss Smith for R60 000. The
vehicle was purchased on the 31 May 2018. Vehicle B was purchased on the 1 March 2019.
Purchased a new delivery vehicle (Vehicle C) for R345 000 on credit from N&N Motors on 1
December 2020
All machinery was purchased on the 30 April 2017
The depreciation policy on non-current assets are as follows:
Vehicles: 20% on cost using the straight-line method and no residual value
Machinery: 10% per annum using the diminishing balance method and no residual
value
IGNORE VAT
Santiago Traders has a 28 February year end
Q.1.1
Journalise ALL the above transactions for the year ended 28 February 2021 in
the General Journal including the year-end adjustment entries for depreciation.
Round off to the nearest Rand
Narrations are not required
Q.1.2
If Santiago Traders wants to sell Vehicle C on 31 May 2021 and make a profit on
sale of the vehicle, how much should Santiago Traders sell the vehicle for?
Provide calculations to support your answer
Transcribed Image Text:Q.1.1
DATE
DETAILS
FOL
DEBIT
CREDIT
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