3 marksRoger is trader. He provides window cleaning services to customers.
An extract from Roger's statement of financial position at 30 June 2024 showed the following:
Cost | Accumulated depreciation | Net book value | |
$ | $ | $ | |
Vehicles | 85 000 | 52 500 | 32 500 |
The following transactions took place during the year ended 30 June 2025.
On 1 July 2024 Roger purchases a vehicle on credit from EZ Motors for $20 000.
On 31 December 2024 Roger sold a vehicle by bank transfer for $5 500. The vehicle had originally been purchases on 1 July 2022 for $12 000.
Roger depreciates vehicles by 20% per annum using the straight-line method. Depreciation is calculated monthly.
REQUIRED
Prepare the vehicles account for the year ended 30 June 2025. Balance the account and bring down the balance on 1 July 2025.
Roger
Vehicles account
Date | Details | $ | Date | Details | $ |
2024 | |||||
Jun 30 | Balance b/d | 85 000 | |||
5 marksPrepare the provision for depreciation of vehicles account for the year ended 30 June 2025. Balance the account and bring down the balance on 1 July 2025.
Roger
Provision for depreciation of vehicles account
Date | Details | $ | Date | Details | $ |
2024 | 2024 | ||||
Jul 1 | Balance b/d | 52 500 | |||
3 marksPrepare the disposal account for the year ended 30 June 2025.
Roger
Disposal account
Date | Details | $ | Date | Details | $ |
State whether Roger made a profit or loss on the sale of the vehicle.
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