The following appears in the books of Monica Traders on 1 March 2015: Office equipment 399...

 

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The following appears in the books of Monica Traders on 1 March 2015: Office equipment 399 420 Accumulated depreciation: office equipment 180 000 During the financial year ended 28 February 2016, the following transactions pertaining to office equipment took place: • On 1 December 2015, a new coffee machine for use by office staff and personnel was bought for R31 920 cash, including VAT. On 1 September 2015, an old computer, which had been bought on 1 December 2014 for R20 700 (including VAT), was sold for R5 750 cash (including VAT). Important additional information: • Monica traders is a registered VAT vendor. A standard VAT rate of 15% applies. • In accordance with the VAT act, office equipment used for the purposes of staff entertainment are non-allowable items. In accordance with the VAT act, office equipment used for business purposes are standard- rated allowable items. Monica Traders depreciates all their assets at a rate of 33 1/3% according to the reducing balance method. Required: Present the following accounts in the general ledger of Monica Traders for the year ended 28 February 2016 to your lecturer. • Office equipment (B4) • Accumulated depreciation: office equipment (B5) Asset disposal (N16) Make use of a marker and white board. Show all your calculations and submit your printed hard copy to the lecturer. The following appears in the books of Monica Traders on 1 March 2015: Office equipment 399 420 Accumulated depreciation: office equipment 180 000 During the financial year ended 28 February 2016, the following transactions pertaining to office equipment took place: • On 1 December 2015, a new coffee machine for use by office staff and personnel was bought for R31 920 cash, including VAT. On 1 September 2015, an old computer, which had been bought on 1 December 2014 for R20 700 (including VAT), was sold for R5 750 cash (including VAT). Important additional information: • Monica traders is a registered VAT vendor. A standard VAT rate of 15% applies. • In accordance with the VAT act, office equipment used for the purposes of staff entertainment are non-allowable items. In accordance with the VAT act, office equipment used for business purposes are standard- rated allowable items. Monica Traders depreciates all their assets at a rate of 33 1/3% according to the reducing balance method. Required: Present the following accounts in the general ledger of Monica Traders for the year ended 28 February 2016 to your lecturer. • Office equipment (B4) • Accumulated depreciation: office equipment (B5) Asset disposal (N16) Make use of a marker and white board. Show all your calculations and submit your printed hard copy to the lecturer.

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Office Equipment Account VAT is part of cost of new coffee machine as it is used for staff entertain... View the full answer