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

Related party transaction, Related Party Transaction - Business or other tr...

Related Party Transaction - Business or other transaction between persons who don't have an arm's-length relationship (for example a relationship with independent, competing intere

What type of an asset is goodwill, What kinds of risks does a firm like Ama...

What kinds of risks does a firm like Amazon.com face with respect to safeguarding its assets? What types of controls do you think it already has in place to minimize these risks? G

Quality discount and order quantity, The standard EOQ analysis is depends o...

The standard EOQ analysis is depends on the assumption which the price per unit keeps constant irrespective of the size of the order. While quantity discounts are obtainable, that

Absorbed cost, These are the indirect costs that are related with manufactu...

These are the indirect costs that are related with manufacturing. Absorbed costs involve expenses like insurance, or property taxes for the building in which the production process

Define case study of a company that exports goods, Define Case Study of A C...

Define Case Study of A Company that exports goods? A company exports goods to country K. Your work as an international cash manager needs you to estimate the value of country K

Calculate infant mortality rate, Q. Calculate infant mortality rate? Mid...

Q. Calculate infant mortality rate? Mid year population 440000 Late fatal death          29 No. of live birth           5200 No. of infant death      423 No. of mate

Calculate economic profit, Calculate Economic profit: Suppose a monopo...

Calculate Economic profit: Suppose a monopolistically competitive firm is facing the following demand and cost information. a.  If the firm is a profit maximizer, how

Determine the overvalue or undervalue of share, The New York Jets have deci...

The New York Jets have decided to go public and are offering new shares for $40. Since the Jets want to build a new stadium, the firm will retain all earnings and will not issue an

Prepare income statement for current year, following are the amounts of the...

following are the amounts of the assets and liabilities of St. Kitts Travel Agency at December 31, 2010, the end of the current year, and its revenue and expenses for the year. The

Adjusting Entries, How do I treat with Expenses Outstanding, for example, M...

How do I treat with Expenses Outstanding, for example, Marketing Expenses outstanding at year end is $1250. How do I adjust?. It is a note under the trial balance.

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