The following balances as at the 1 January 2020, were extracted from the accounting records of...

 

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The following balances as at the 1 January 2020, were extracted from the accounting records of De Ligt Wholesalers. Balances at 1 January 2020 Land and Buildings Motor Vehicles at cost Accumulated depreciation - Motor Vehicles Equipment at cost Accumulated depreciation - Equipment Note 1 2233 R 1 200 000 540 000 (216 000) 600 000 (200 000) The following information needs to be taken into account for the year ended 31 December 2020 1. The Land and Buildings were purchased on 31 December 2019. Land was valued at R400 000 at purchase. De Ligt decided to adopt a straight-line method of depreciation at 2.5% per annum for buildings. Land will not be depreciated. 2. An old motor vehicle which cost R120 000 and had accumulated depreciation of R80 000 at 1 January 2020, was sold for R40 000 on 30 June 2020. Motor Vehicles are depreciated evenly over the estimated useful life of 5 years. No additional motor vehicles were purchased during the 2020 financial year. 3. Equipment is depreciated at 15% per year on the diminishing balance method. New equipment was purchased on 1 July 2020 for R50 000. No equipment was sold during the financial year. Required Prepare the Property, Plant and Equipment Note as it would appear in the financial statement of De Ligt Wholesalers. You can leave out the 'Total' column. Show all your workings The following balances as at the 1 January 2020, were extracted from the accounting records of De Ligt Wholesalers. Balances at 1 January 2020 Land and Buildings Motor Vehicles at cost Accumulated depreciation - Motor Vehicles Equipment at cost Accumulated depreciation - Equipment Note 1 2233 R 1 200 000 540 000 (216 000) 600 000 (200 000) The following information needs to be taken into account for the year ended 31 December 2020 1. The Land and Buildings were purchased on 31 December 2019. Land was valued at R400 000 at purchase. De Ligt decided to adopt a straight-line method of depreciation at 2.5% per annum for buildings. Land will not be depreciated. 2. An old motor vehicle which cost R120 000 and had accumulated depreciation of R80 000 at 1 January 2020, was sold for R40 000 on 30 June 2020. Motor Vehicles are depreciated evenly over the estimated useful life of 5 years. No additional motor vehicles were purchased during the 2020 financial year. 3. Equipment is depreciated at 15% per year on the diminishing balance method. New equipment was purchased on 1 July 2020 for R50 000. No equipment was sold during the financial year. Required Prepare the Property, Plant and Equipment Note as it would appear in the financial statement of De Ligt Wholesalers. You can leave out the 'Total' column. Show all your workings