WorksheetsG11ACCL16 Asset Disposal General Ledger Pre Lesson Quiz
Total questions: 10
Worksheet time: 1hrs 13mins
Which of the following statements are incorrect?
All the information of an asset, including the rate and method od depreciation, is kept up to date in the asset register
Depreciation is paid at the end of the year from the bank account of the business and recorded in the CPJ
Depreciation of assets is an expense for the business
The first step in recording the disposal of an asset is to calculate the accumulated depreciation up to the ate of disposal
What is the main purpose of the asset disposal account in the general ledger?
To show that an asset has been disposed of
It is used to reconcile with the asset register at the end of the year
To check which assets should be disposed soon
To calculate whther a profit or loss has been made on the sale of asset.
Simon's Pies owns a large industrial quality oven that was purchased at a cost price of R92 108. The accumulated depreciation up to 30 June 2021 is R29 105. The depreciation for the year ended 30 June 2022 has been calculated as R14 981.
Calculate the carrying value of the oven as at 30 June 2022.
R63 003
R77 127
R48 022
R92 108
When is depreciation on a fixed asset sold calculated when it is sold at the end of the financial year?
At the beginning of the year
For the Full year
From the middle of the year
The Matching Principle States that:
Depreciation should only be recorded for the current year
Assets should be recorded at Cost Price
Accumulated Depreciation is an expense
For every debit there is an equal credit
An asset has a selling price of R6000 and a cost price of R25 000. The date of sale and financial year end are the same date. Depreciation is caluculated at 10% straight line method and the accumulated depreciaiton value of the asset is is R17 500.
Depreciation per year
R2 500
Accumulated depreciation at sale
R20 000
Carrying Value
R5 000
Profit/Loss made on asset
R1 000
An asset with a selling price of R9000 and a cost price of R40 000 is sold on 1 Septmber 2022. The financial year end is 28 February 2023. The accumulated depreciation at the beginning of the financial year is R28 800 on 8% pa straight line method.
Depreciation
R1600
Accumulated depreciation at sale
R30 400
Carrying Value at sale
R9 600
Profit/Loss
R600
Months of asset in use
6
The selling price of an asset is R120 000 and the Cost price is R250 000. The date of sale and financial year end land on the same date. The accumulated depreciation of the asset is R120 500 at the beginning of the year, using 10% pa dminishing balance method.
Carrying Value (beginning of financial year)
250 000 - 120 500
Depreciation
R12 950
Carrying Value (end of financial year)
129 500 - 12 950
Profit/Loss made on sale
R3 500
The selling price on an asset is R70 000 on 30 November 2022. The cost price of the asset is R220 000 and the financial year end if 28 Fenruary 2023. Depreication is calculated on diminishing balance method (8% pa) and the accumulated depreciation at the beginning of the year is R145 000.
Beginning of year carrying value
R74 500
Depreciation at point of sale
R4 470
Carrying value at sale
R70 030
Months in use
9
Profit/Loss made on sale
R30
A business plans wants to know how much a vehicle is worth. The vehicle was purchased exactly 3 years ago. It has a Cost price of R250 000 and a depreciation value rate of 20% per annum.
Depreication for year 1
R50 000
Accumulated Depreciaton for year 2
R90 000
Carrying value at the beginning of year 3
R160 000
Depreciation for year 3
R32 000
Carring Value at the end of year 3
R128 000
