GRADE 11 ACCOUNTING
SET BY: J CANSFIELD
CYCLE TEST: TERM 2
MARKS: 80
MINS: 60
INSTUCTIONS:
1)
2)
3)
4)
Answer on the answer booklet provided.
You may use pencil
No tip-ex is allowed
Write neatly
QUESTION 1
ASSET DISPOSAL
(34 marks; 30 minutes)
Required:
Prepare the following accounts in the General Ledger of “Air Supply Services”:
1)
2)
3)
Vehicles
Accumulated Depreciation on Vehicles
Asset Disposal
(7)
(22)
(5)
Provide for depreciation on the remaining vehicles at year end, 30 June 2001.
Balance or close all accounts on 30 June 2001.
NB: Round off to the nearest rand.
Information:
1. Balances on 1 July 2000
Vehicles
Accumulated Depreciation on Vehicles
R 460 000
R 280 000
2. On 1 April 2001, one of the vehicles, which originally cost R150 000, was sold for R45 000 on
credit. The accumulated depreciation on this vehicle at 1 July 2000 was R96 000.
3. Purchased a new vehicle on 30 April 2001 for R112 000 on credit from M.O.P Motors.
4. Depreciation is calculated at 20% p.a. on book value.
QUESTION 2
ASSET MANAGEMENT
(36 marks; 30 minutes)
Required:
Study the assets register BELOW and answer the following questions:
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
Identify the method of depreciation and give a reason for your answer.
Why would the business prefer using the above method?
What are the factors considered when determining the useful life of an asset?
Explain any four factors.
At what rate is the asset depreciated?
Determine the date of purchase.
The owner wants to trade in the van for a newer model. What would be a fair price?
Motivate your answer.
What is the importance of maintaining effective control of fixed assets?
How do you maintain control over fixed assets? Explain any three methods.
Information:
(4)
(4)
(8)
(2)
(2)
(4)
(6)
(6)
GRADE 11 ACCOUNTING
SET BY: J CANSFIELD
CYCLE TEST: TERM 2
MARKS: 80
MINS: 60
INSTUCTIONS:
1)
2)
3)
4)
Answer on the answer booklet provided.
You may use pencil
No tip-ex is allowed
Write neatly
ANSWERSHEET
NAME: ____________________________
Question
Time
Possible Marks
1
30 minutes
34 marks
2
30 minutes
36 marks
TOTAL
70
Actual Marks
ROUGH WORK
QUESTION 1
ASSET DISPOSAL
(34 marks; 30 minutes)
VEHICLES
ACCUMULATED DEPRECIATION ON VEHICLES
ASSET DISPOSAL
ROUGH WORK
QUESTION 2
ASSET MANAGEMENT
(36 marks; 30 minutes)
2.1
Identify the method of depreciation and give a reason for your answer.
(4)
2.2
Why would the business prefer using the above method?
(4)
2.3
What are the factors considered when determining the useful life of an asset?
Explain any four factors.
(8)
2.4
At what rate is the asset depreciated?
(2)
2.5
Determine the date of purchase.
(2)
2.6
The owner wants to trade in the van for a newer model. What would be a fair price?
Motivate your answer.
(4)
2.7
What is the importance of maintaining effective control of fixed assets?
(6)
2.8
How do you maintain control over fixed assets? Explain any three methods.
(6)
MEMO
QUESTION 1
2000
July
2001
Apr
ASSET DISPOSAL
1 Balance

30 Creditors Control
(34 marks; 20 minutes)
B/d
VEHICLES
2001

460 000
Apr
1 Asset Disposal
GJ
150 000 
CJ
112 000
C/d
422 000
June
30
Balance
572 000
2001
July
1
Balance
B/d
572 000
422 000
(7)
2001
Apr
1
June
30 Balance
ACCUMULATED DEPRECIATION ON VEHICLES

2000
1 Balance
GJ 104 100
July
2001

c/d
212 933  Apr
1 Depreciation (SOLD)
Depreciation
June 30 (NEW & REM)
Asset Disposal
B/d
GJ
GJ
317 033
280 000 

8 100
 
28 933 
317033
2001
July
1
Balance
b/d
212 933 ()
(22)
ASSET DISPOSAL
2001
Apr
1
Vehicles
()
150 000
GJ
2001
Apr
1
Accumulated
Depreciation on
Equipment
GJ
Debtors Control
CRJ
Loss on Sale of Asset GJ
150 000
104 100 ()
45 000 
900 
150 000
(5)
CALCULATIONS:
Vehicles being sold:




150 000 – 96 000 = 54 000 x 20/100 x 9/12 = 8100 depr.
1.

2.


8100 + 96 000 = 104 100
New Vehicles:

3.


112 000 x 20/100 x 2/12 = 3733 depr.
Remaining Vehicle:
4.
460 000
280 000
-150 000
-96 000




310 000 - 184 000 = 126 000 x 20/100 = 25 200 depr.
Depreciation at year end:

1. 3 733 + 25 200 = 28 933 depr. year end.