$1\mathrm{.}3$

REQUIRED

Study the information provided below and answer the following questions:

$1\mathrm{.}3\mathrm{.}1$ Prepare the Asset Disposal account in the general ledger. Close off the account.

$(4$ marks$)$

$1\mathrm{.}3\mathrm{.}2$ Calculate the balance in the Accumulated depreciation for vehicles account as at $29$ February $2024.$

$(3$ marks$)$

$1\mathrm{.}3\mathrm{.}3$ Calculate the profit or loss on the disposal, if the vehicle was sold on $31$ August $2023($instead of $01$ March $2023).$

$(3$ marks$)$

INFORMATION

On $01$ March $2023($the beginning of the financial year$)$ the following balances, amongst others, appeared in the ledger of Munster Stores:

On $01$ March $2023$ a vehicle was sold for R$70000$ cash. The vehicle was purchased on $01$ March $2020$ for R$200000$ and the accumulated depreciation on it amounted to R$120000$ on $01$ March $2023.$ The vehicle was expected to have a useful life of five years. Depreciation is calculated using the straight$-$line method.

Depreciation on the remaining $($unsold$)$ vehicles amounted to R$100000$ for the year ended $29$ February $2024.$