Asset Register and Residual Value / Scrap Value of R1 (Grade 12 NSC Matric Accounting): Flashcards
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Asset register definition
Asset register definition
Detailed record tracking fixed assets over time
Formula for carrying value/book value
Formula for carrying value/book value
Cost Price - Accumulated Depreciation = Carrying Value
Straight line depreciation basis
Straight line depreciation basis
Fixed % of original cost price each year
Diminishing value depreciation basis
Diminishing value depreciation basis
% of current carrying value each year
R1 scrap value rule
R1 scrap value rule
Minimum value that must remain on books after depreciation
Purpose of R1 scrap value rule
Purpose of R1 scrap value rule
Prevents assets being completely written off the books
When must depreciation stop
When must depreciation stop
When carrying value reaches R1
Straight line depreciation amount characteristic
Straight line depreciation amount characteristic
Remains constant throughout asset's life
Diminishing value depreciation amount trend
Diminishing value depreciation amount trend
Decreases annually as carrying value gets smaller
When R1 rule applies strictly
When R1 rule applies strictly
When asset has been depreciated to exactly R1