AB Transport Services Ltd had this abridged statement of financial position on 30 June 20x4:

AB Transport Services depreciates vehicles at 25% p.a. on the diminishing-balance method.

These transactions occurred after 30 June 20x4:

20x4 – 1 July

• Bought a new truck from A1 Motors for R40 000.

• A truck bought for R30 000 on 30 June 20x1 was traded in for R13 000 and the balance was paid by cheque.

20x5 – 31 August

• Bought a new truck from A1 Motors for R50 000.

• A truck, bought for R28 000 on 1 April 20x2, was traded in for R12 000 and the balance was paid by cheque.

You are required to:

Prepare these accounts for the period from 30 June 20x4 to 30 June 20x6:

• Vehicles.

• Accumulated depreciation: vehicles.

• Asset disposal.

Transcribed Image Text:

ASSETS Vehicles Less: Accumulated depreciation Other assets EQUITY & LIABILITIES 160 000 (60 000 100 000 00|Other liabilities 200 000 00 300 000 00 00 Share capital 00)| Retained earnings 200 000 00 60 000 00 ……..…….…….. 40 000 00 300 000 00