WorksheetsGrade 11
Total questions: 16
Worksheet time: 8mins
What is the cost of the asset being sold?
740 000
110 000
630 000
0
Why do we have asset disposal on the Credit Side of the Asset Account? (look at the picture)
Assets decrease on the credit side
To show that a vehicle is taken out of the vehicles account.
Assets increase on the credit side so this means that the assets are increasing
To show that a new vehicle has been bought for R110 000
If the asset is traded in, what would be the entry on the debit side? (look at the picture)
Trade in
Debtor's control
Creditor's control
Bank
Which side would a profit on sale be recorded? (Look at the picture)
On the Debit side
Always on the Credit side
The only way a vehicle can be sold is by trading it in.
True
False
When a director decides to take an asset for personal use it will be regarded as drawings.
True
False
When an asset is bought the asset account will be credited.
True
False
When a company dispose of an asset it will decrease the total assets on the credit side.
True
False
When an asset is depreciated at a cost of 20%, the useful life of that asset is expected to be
3 years
5 years
7 years
10 years
When the carrying value of an asset is R50 000 and the cost price R200 000, the accumulated depreciation will be?
R250 000
R150 000
R50 000
R200 000
What will the double entry be in connection with the old vehicle when an old vehicle is traded in?
Debit Vehicles and Credit Asset disposal
Debit Vehicles and Credit Bank
Debit Creditors control and Credit Asset disposal
Debit Bank and Credit Vehicles
When you add the carrying value of an asset to the accumulated depreciation what amount will you get?
Market value
Selling price
Cost price
The rate of depreciation
How many movements can we find in the fixed asset note?
1
2
3
4
Depreciation will be regarded as an asset or expense?
Asset
Expense
To which account will Asset disposal close of to?
Profit on sale of asset
Income statement
Depreciation
Accumulated Depreciation in Fixed Assets Note at the end of the Year?
Acc Depr @ Beginning + Depr - Acc Depr of Sold
Acc Depr at begin + Depr - Sold Depr
Total Cost - Sold Cost - New Cost - Accumulated Depreciation on Sold Asset
Cost price - Accumulated Depreciation
