Using the provided insert answer the following questions. Ignore VAT Pools for Pleasure (Pty) Ltd has a year-end of 30 September. On 1 June 2011, the business purchased a digging machine for R2 300 000. It was reliably estimated that the machine had a residual value of R540 000 and is expected to be used evenly over a period of 5 years. The digging machine was ready for use on 30 June 2011 after safety and licensing costs totalling R18 600 had been incurred. On 1 March 2013, Pools for Pleasure (Pty) Ltd sold the digging machine for R1 700 000 cash. Calculate the depreciable amount of the digging machine on 30 September 2011. 2.Calculate the opening balance on the accumulated depreciation: PPE: Machinery general ledger account on 1 October 2012. 3.Prepare the asset disposal account as it would appear in the general ledger of Pools for Pleasure (Pty) Ltd for the year ended 30 September 2013. 4.Discuss any THREE types of taxes and their implications to businesses.
Using the provided insert answer the following questions. Ignore VAT Pools for Pleasure (Pty) Ltd has a year-end of 30 September. On 1 June 2011, the business purchased a digging machine for R2 300 000. It was reliably estimated that the machine had a residual value of R540 000 and is expected to be used evenly over a period of 5 years. The digging machine was ready for use on 30 June 2011 after safety and licensing costs totalling R18 600 had been incurred. On 1 March 2013, Pools for Pleasure (Pty) Ltd sold the digging machine for R1 700 000 cash. Calculate the depreciable amount of the digging machine on 30 September 2011. 2.Calculate the opening balance on the accumulated depreciation: PPE: Machinery general ledger account on 1 October 2012. 3.Prepare the asset disposal account as it would appear in the general ledger of Pools for Pleasure (Pty) Ltd for the year ended 30 September 2013. 4.Discuss any THREE types of taxes and their implications to businesses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Using the provided insert answer the following questions.
Ignore VAT
Pools for Pleasure (Pty) Ltd has a year-end of 30 September. On 1 June 2011, the business purchased a digging
machine for R2 300 000. It was reliably estimated that the machine had a residual value of R540 000 and is
expected to be used evenly over a period of 5 years. The digging machine was ready for use on 30 June 2011 after
safety and licensing costs totalling R18 600 had been incurred.
On 1 March 2013, Pools for Pleasure (Pty) Ltd sold the digging machine for R1 700 000 cash.
- Calculate the
depreciable amount of the digging machine on 30 September 2011. 2.Calculate the opening balance on theaccumulated depreciation : PPE: Machinery general ledger
account on 1 October 2012.
3.Prepare the asset disposal account as it would appear in the general ledger of Pools for Pleasure
(Pty) Ltd for the year ended 30 September 2013.
4.Discuss any THREE types of taxes and their implications to businesses.
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