Question

ASSET REGISTER

Asset description: Hyundai H100

Tracking/ Serial no: BN 020

Registration no: RJX 987 GP

Date of purchase: 31 Oct 2014

Depreciation method: Straight line @   20%

Useful LIFE?

Date of use	Cost Price	Residual Value	Depreciable Amount	Depreciation	Carrying Value
1/11/2014	250 000	8 000	242 000	8 067	233 933
31/12/2015	?	?	?	?	?
31/12/2016	?	?	?	?	?
31/12/2017	?	?	?	?	?
31/12/2018	?	?	?	?	?
01/09/2019	?	?	?	?	?
01/09/2019	The vehicle was disposed off and a profit of R 12 500 was realised on the disposal.

ASSET REGISTER Asset description: Hyundai H100 Tracking/ Serial no: BN 020 Registration no: RJX 987 GP Date of purchase: 31 Oct 2014 Depreciation method: Straight line @   20% Useful LIFE?

1. Rewrite the asset register as drafted above, thereafter calculate and fill in all the missing figures.                                                                                            

Answer 1

Asset description	Hyundai H100
Tracking/ Serial no	BN 020
Registration no	RJX 987 GP
Date of purchase	31 Oct 2014
Depreciation method	Straight line @ 20%
Useful life	5 years

Annual depreciation = Depreciable amount X 20% OR Depreciable amount / 5 years

Annnual depreciation = (250,000 - 8,000) / 5 or X 20% = 48,400 (For years 2015, 2016, 2017, 2018)

Depreicaiton for 2014 = (48,400 X 2) / 12 = 8,067

Depreciation for 2019 = (48,400 X 8) /12 = 32,267

Date of use	Cost price	Residual value	Depreciable amount	Depreciation	Carrying value	Remarks
1-Nov-14	250,000	8,000	242,000	8,067	233,933
31-Dec-15	250,000	8,000	233,933	48,400	185,533	Opening. Carr. Val - Dep.
31-Dec-16	250,000	8,000	185,533	48,400	137,133	Opening. Carr. Val - Dep.
31-Dec-17	250,000	8,000	137,133	48,400	88,733	Opening. Carr. Val - Dep.
31-Dec-18	250,000	8,000	88,733	48,400	40,333	Opening. Carr. Val - Dep.
1-Sep-19	250,000	8,000	40,333	32,267	8,067	Opening. Carr. Val - Dep.

Profit on sale = Sales proceed - Book value

12,500 = Sales proceed - (8,067 [carrying value] + 8,000 [residual value])

12,500 = Sales proceed - 16,067

12,500 + 16,067 = Sales proceed

Sales Proceed = 28,567