Balances on 1 March 2015 Cost Accumulated…
Balances on 1 March 2015 Cost Accumulated depreciation Carrying value Land and buildings 400 000 ( 0) 400 000 Vehicles 300 000 (76 000) 224 000 Equipment 80 000 (20 000) 60 000 INFORMATION Land and buildings ● Extension to the building at a cost of R120 000. ● Repairs to the store room amounts to R25 000 Vehicles ● Trade in an old vehicle at Jozi Motors on 1 September 2015 for R55 000. This vehicle was bought on 1 March 2013 for R100 000. The new vehicle was purchased on credit on the same day for R150 000. ● Depreciation on vehicles is calculated at 20% p.a. on the cost price / straight line method. Equipment ● Kgosi Traders bought eight laptops at R6 000 each on 1 December 2015. ● Depreciation on equipment is calculated at 10% p.a on the diminishing balance method. 37 TOTAL 150