Note to the Balance Sheet and Asset Disposal (Grade 12 NSC Matric Accounting): Quizzes
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Practise the questions
10 questions from this quiz
What does Note 3 to the Balance Sheet provide detailed information about?
What does Note 3 to the Balance Sheet provide detailed information about?
Property, Plant and Equipment
What is the formula for calculating Carrying Value in Note 3?
What is the formula for calculating Carrying Value in Note 3?
Cost Price - Acc. Depreciation
What is Step 1 in the asset disposal process?
What is Step 1 in the asset disposal process?
Transfer cost price to Disposal Account
When is additional depreciation calculated during asset disposal?
When is additional depreciation calculated during asset disposal?
From start of year to disposal date
What must the Asset Disposal Account balance equal at year-end?
What must the Asset Disposal Account balance equal at year-end?
Zero
What is debited to the Asset Disposal Account?
What is debited to the Asset Disposal Account?
Cost price and any profit on sale
What is credited to the Asset Disposal Account?
What is credited to the Asset Disposal Account?
Acc. depreciation, selling price, loss
At what value are disposals recorded in the movements section of Note 3?
At what value are disposals recorded in the movements section of Note 3?
At carrying value (book value)
When does a profit on sale of an asset occur?
When does a profit on sale of an asset occur?
When selling price exceeds carrying value
What is a common mistake when recording disposals in Note 3?
What is a common mistake when recording disposals in Note 3?
Recording disposals at selling price