On 1 August 2008 BUDGET CAR HIRE sold one of their vehicles for R159 600 cash....

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On 1 August 2008 BUDGET CAR HIRE sold one of their vehicles for R159 600 cash. The vehicle was originally purchased for R228 000 on 1 May 2007. On 1 September 2008 a new vehicle was purchased on credit for R342 000, but only brought into use one month later. This vehicle is also estimated to have a residual value of R50 000. Additional information: BUDGET CAR HIRE is a registered VAT vendor and only trades with registered VAT vendors. VAT is levied at 14%. All purchase and selling prices include VAT. All vehicles have an estimated useful life of 5 years and are depreciated on the straight-line method. Page 2 of 62 REQUIRED: Journalise all the transactions of BUDGET CAR HIRE for the year ended 28 February 2009. (Narrations are not required.) NOTE: Round all decimals to the nearest rand. On 1 August 2008 BUDGET CAR HIRE sold one of their vehicles for R159 600 cash. The vehicle was originally purchased for R228 000 on 1 May 2007. On 1 September 2008 a new vehicle was purchased on credit for R342 000, but only brought into use one month later. This vehicle is also estimated to have a residual value of R50 000. Additional information: BUDGET CAR HIRE is a registered VAT vendor and only trades with registered VAT vendors. VAT is levied at 14%. All purchase and selling prices include VAT. All vehicles have an estimated useful life of 5 years and are depreciated on the straight-line method. Page 2 of 62 REQUIRED: Journalise all the transactions of BUDGET CAR HIRE for the year ended 28 February 2009. (Narrations are not required.) NOTE: Round all decimals to the nearest rand.

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Here are the journal entries for BUDGET CAR HIRE for the year ended 28 February 2009 1 Sale of vehic... View the full answer