Question: Super Eats started their business on 2 January 2021 and purchased two delivery motorbikes at R30 000 each. The financial year end of the

Super Eats started their business on 2 January 2021 and purchased two delivery motorbikes at R30 000 each. The financial year end of the entity ends on 31 December of every year and depreciation on the motorbikes is calculated at 30% per year on the diminishing balance method. One of the bikes was involved in an accident on 31 March 2023 and was completely written off. Insurance paid out R12 500 for the damaged bike. Required: Calculate the profit or loss on scrapping the motorbike that was involved in an accident. All workings must be rounded off to the nearest whole number. (8)

Step by Step Solution

★★★★★

3.46 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the profit or loss on scrapping the motorbike that was involved in an accident we need ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

All the information provided is complete Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative...

Sharif and Judith are married and purchased a vacation home together in Maine for $ 2 5 0 , 0 0 0 . Sharif died suddenly six months later and at that time the fair market value of the vacation home...

Administrative agencies are not mentioned anywhere in the Constitution, but the Constitution did provide the basic legislative rights for federal and state governments to create specific...

Otjituuo Domestic Entity (OD Entity), is a small highway construction company based in Benoni, Johannesburg. The business has been in operation for a number of years. OD Entity and all its suppliers...

QUESTION TWO [20] 2.1 Small Time Dealers purchased goods to the value of R19 000. All the goods were sold within 20 days. It was determined that the following additional expenses should be allocated...

2 . 3 The following information was taken from the accounting records of Midway retailers at 3 0 September 2 0 2 3 : R ? Trade receivables at 3 0 September 2 0 2 3 3 6 0 0 0 Allowance for credit...

2 . 3 The following information wes taken from the accounting reconds of Midway retailers at 3 0 September 2 0 2 3 : Trade rocoivalies at 3 0 Soptember 2 0 2 3 Alowance for credt losses ( Provision...

Innforest Bhd purchased 10 acres of land on 1 January 2011 to develop a project for tourism purposes. The project is known as Seri Banun Kampung Adat Melayu. It is a place to gather the custom and...

FACULTY OF COMMERCE, MANAGEMENT AND LAW QUESTION 1 [40 MARKS] You were recently appointed as the group financial accountant of the Strawberry Ltd group of companies. The accountants of the various...

Faculty of Military Science School for Organisation and Resource Management Department of Accounting and Auditing Auditing 244 Assignment 3 Due date 19 October 2022 QUESTION 1 (8 marks) Which of the...

Question 1 40 Marks IGNORE ANY NORMAL INCOME TAX IMPLICATIONS Satoshi Ltd (Satoshi) is a Namibian company and has a 31 December year end. Satoshi sells rock drilling machinesthat are used in quarries...

Suppose that Mullen Co, a U.S.-based MNC, knows that it will need 200,000 pounds in one year in order to purchase supplies. It is considering a currency call option to hedge this payable. Currency...

What is exception handling? Explain how to handle an exception with appropriate example. Or Explain how to handle exceptions using try, catch and throw mechanism.

3. What is wrong with the algorithm shown in Figure 5-33? 1. shoot the basketball 2. if the basketball went through the hoop say "I did it!" else if the basketball did not go through the hoop say...

The Great Outdoors Clothing Company in Problem 3-31 has designed its packaging and delivery process to deliver orders to a customer within 3 business days 1 day, which it tells customers. Using the...

Data for Weatherall Company are presented in BE. Compute the cost of the ending inventory under the average-cost method, assuming there are 380 units on hand. In BE, In its first month of operations,...

In its first month of operations, Weatherall Company made three purchases of merchandise in the following sequence: (1) 300 units at $6, (2) 400 units at $7, and (3) 200 units at $8. Assuming there...

For Turgo Company, variable costs are 60% of sales, and fixed costs are $195,000. Managements net income goal is $75,000. Compute the required sales in dollars needed to achieve managements target...

Larissa Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $140,000. Compute the break-even point in units using (a) The mathematical equation and (b)...

Question 55 ptsCompany A is considering two projects: Project X , which involves opening a new store, and Project Y, which involves upgrading existing store equipment. These projects are best...

Ludowicz acquired 20% of the common shares of Sitar on January 1, 2012 for $22,000. At this date, all the identifiable assets and liabilities of Ludowicz were recorded at fair value. An analysis of...

ROS Inc. is located in Switzerland. ROS, whose currency is the Swiss franc (SF), is wholly owned by CRO Ltd. Its functional currency is the SF. The summarized balance sheet for ROS at December 31,...

How would a not-for-profit organization identify an investment over which it has significant influence?

The power quality of a transformer is measured by the quality of the voltage. Two causes of poor power quality are "sags" and "swells." A sag is an unusual dip, and a swell is an unusual increase in...

Refer to the Applied Psychology in Criminal Justice (Sept. 2009) study of convicted drug dealers' motivations, Exercise 2.102 (p. 77). Recall that the sample of drug dealers had a mean Wanting...

The dominance of Microsoft in the computer software market has led to numerous malicious attacks (e.g., worms, viruses) on its programs. To help its users combat these problems, Microsoft...