Explain depreciate non-current assets, Financial Accounting

Assignment Help:

Question:

Lucy Kim is in the car hire business. The following information came from her Fixed Asset Register on 31 December 2009:

1466_Depreciate non-current assets.png

On 31 March 2009, she sold the car which had been bought on 1 July 2007 for Rs 1 950 000, for the sum of Rs 1 137 500.

All acquisitions were paid for on the date of purchase by cheque, except for the 1 August 2009 car which was bought on credit from Car Ltd. All Vehicles are depreciated at 20% per annum using the straight line method and is time apportioned for the number of months of use.

Required:

A. For the year ended 31 December 2009 draw up:

i. The Vehicle Account
ii. The Provision for Depreciation Account
iii. The Disposal Account and
iv. The Balance Sheet extract for the years 2007, 2008 and 2009.

B. Briefly define the term ‘depreciation' and explain why there is a need to depreciate non-current assets?


Related Discussions:- Explain depreciate non-current assets

Accounting objectives, Accounting objectives Accounting has two main ob...

Accounting objectives Accounting has two main objectives: To assist control over the assets and liabilities, and the income and expenditure of the enterprise; and To

Calculate the gross profit margin and net profit margin, Assets            ...

Assets                                                       2011                                                                        2010 Non Current Assets

State accounting, discuss the importance of state accounting to an effectiv...

discuss the importance of state accounting to an effective fiscal administration

Registration of deeds of arrangement and assent of creditors, Registration ...

Registration of a D of A and assent of creditors A D of A will be void unless it is registered with the Registrar within 7 clear days after first execution and is properly stam

The expected net present values, A company is considering investing some in...

A company is considering investing some independent proposals, The proposals with their expected net present values and standard deviations are given in the following table.

Reduces retained earnings by the fair market value, Q. If a stockholder rec...

Q. If a stockholder receives a dividend that reduces retained earnings by the fair market value of the stock, the stockholder has received a a. large stock dividend. b. cash divide

With the ddm formula calculated growth rate, Using CAPM's formula, Retur...

Using CAPM's formula, Return on equity = Risk-free rate + Beta*(Expected market return - risk-free rate) With the given information, Return on equity = 1% + 1.7*(9% - 1%)

Acoounts, The book of Deven Verma could not be tallied. The accountant tran...

The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

Ratios, what is the profitability of

what is the profitability of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd