3.1 Refer to Information B - NSC Accounting - Question 3 - 2017 - Paper 1

For the vehicles, we differentiate between new and old ones:

• New vehicles (35,000) depreciate as follows:

ext{Depreciation (New)} = 35,000 imes rac{20}{100} imes rac{6}{12} = R42,255.

• Old vehicles (350,000) are depreciated as:

ext{Depreciation (Old)} = 350,000 imes rac{20}{100} imes 1 = R70,000.

Thus, total depreciation on vehicles is:

$$ext{Total Depreciation} = 42,255 + 70,000 = R112,255.$$

To obtain the carrying value of Vehicles on 28 February 2017, we consider:

$$ext{Carrying Value} = ext{Cost} - ext{Accumulated Depreciation}.$$

Where the total cost of Vehicles is R422,550 and the accumulated depreciation (from step b) is R77,254:

$$ext{Carrying Value} = 422,550 - 77,254 = R345,296.$$

The carrying value for Equipment sold can be calculated using:

$$ext{Carrying Value} = ext{Cost} - ext{Total Depreciation}.$$

Given a cost of R120,000 and total depreciation reported as R89,100, we get:

$$ext{Carrying Value} = 120,000 - 89,100 = R30,900.$$

The total carrying value for fixed assets can be found by summing the carrying values:

$$ext{Total Fixed Assets} = ext{Land and Buildings} + ext{Vehicles} + ext{Equipment}.$$

Using the values from previous calculations:

$$ext{Total Fixed Assets} = R2,550,000 + R345,296 + 50,994 = R2,946,290.$$