How often Property, plant & equipment and depreciation is asked

Where it was asked

What costs marks here

The questions

1. May/Jun 2017, Q3.119 marks

   Pokemon Traders, extract from the list of balances at 30 June 2016: capital R152 396; drawings R28 500; trade receivables control R101 280; vehicles at cost R176 050; accumulated depreciation — vehicles (1 July 2015) R52 850; trading inventory (1 July 2015) R43 650; bank R28 260; mortgage (XYZ Bank) R140 000; loan from Africa Bank R13 600; commission income R9 000; insurance R4 284; packing materials R44 000; rental income R32 500; water and electricity R2 550. Adjustments: closing inventory R44 875; average monthly rental income for the year is R3 000; packing materials on hand R6 300; commission income of R3 600 is outstanding; water and electricity of R500 is owing; the mortgage (taken out last year, redeemable 1 July 2019) bears 11,5% p.a. interest, not capitalised, paid each 1 July — the current year's interest must still be provided; the Africa Bank loan, taken at the start of the year and repayable 1 July 2016, bears 19,5% p.a. with the interest capitalised against the loan; a debtor owing R4 640 is insolvent and must be written off; the insurance includes the July and August 2016 premiums; vehicles are depreciated at 20% straight-line — a new vehicle was bought on 1 March 2016 for R30 000 and on the same day a vehicle that cost R60 000 and had been in use exactly two years at 1 July 2015 was sold for R15 000; none of these adjustments have been recorded. Total comprehensive income after all adjustments is R3 029. Prepare the statement of financial position as at 30 June 2016 in line with IFRS.

2. May/Jun 2017, Q3.219 marks

   Using the Pokemon Traders information, prepare the property, plant and equipment note for the year ended 30 June 2016 (total column not required).

3. Oct/Nov 2016, Q1.120 marks

   Beaux Art Shop, extract from the pre-adjustment trial balance at 30 June 2016: capital R180 000; drawings R35 000; land and buildings at cost R250 000 with accumulated depreciation R128 000 (the year's R8 000 buildings depreciation is already recorded); vehicles at cost (1 July 2015) R95 000 with accumulated depreciation R53 500; equipment at cost (1 July 2015) R65 000 with accumulated depreciation R12 350; debtors control R12 300; trading inventory (1 July 2015) R18 500; long-term loan from Quah Bank R70 000; creditors control R23 400. Adjustments: closing inventory R23 500; the vehicles are one bought for R45 000 on 31 December 2013 and one bought for R50 000 on 1 July 2011 which was sold on 31 March 2016 for R2 500 — vehicles are depreciated at 20% straight-line; canvas printing equipment costing R15 000 was bought on 1 April 2016 — equipment is depreciated at 10% on the diminishing balance; a R17 500 loan instalment is payable on 1 July 2016; total comprehensive income after all adjustments is R19 360; the bank balance at 30 June 2016 is R15 450. Prepare the property, plant and equipment note for the year ended 30 June 2016 (total column not required), rounding to the nearest rand.

4. Oct/Nov 2016, Q1.213 marks

   Using the Beaux Art Shop information, prepare the statement of financial position as at 30 June 2016 in line with IFRS (notes and comparatives not required).

5. Oct/Nov 2015, Q3.113 marks

   A Adams General Dealer, extract from the list of balances at 31 October 2014: land and buildings at cost R790 000; vehicles at cost R400 000 with accumulated depreciation R204 000 at 1 November 2013; equipment R360 000 with accumulated depreciation R97 560 at 1 November 2013; bank overdraft R2 371; allowance for credit losses R955; capital (1 November 2013) R238 000; debtors control R3 000; inventory (1 November 2013) R30 000; creditors control R38 500; drawings R8 200; rental income R22 000; mortgage at 10% p.a. R870 000. Adjustments: closing inventory R42 000; land and buildings are not depreciated; the allowance for credit losses must be R1 025; rent is a fixed monthly amount receivable in advance and October's rent has not been received; depreciation — equipment 10% diminishing balance, vehicles 20% straight-line, with a R60 000 vehicle bought on 30 April 2014 already recorded; the owner's additional R20 000 capital was banked but the credit entry not yet made; water and electricity of R1 500 for October is unpaid; total comprehensive income after all adjustments is R32 000. Prepare the statement of financial position as at 31 October 2014, in line with IFRS.

6. Oct/Nov 2015, Q3.218 marks

   Using the A Adams General Dealer information, prepare only the property, plant and equipment note as at 31 October 2014 (the total column may be omitted), showing calculations rounded to the nearest rand.

7. May/Jun 2015, Q2.117 marks

   Tiger Stores, extract from the pre-adjustment trial balance at 31 March 2015: land and buildings at cost R750 000; vehicles (1 April 2014) R275 000; equipment (31 March 2015) R600 000; accumulated depreciation at 1 April 2014 — vehicles R110 000, equipment R40 000; fixed deposit R60 000; trading inventory (1 April 2014) R25 300; debtors control R42 500; bank R72 600. Two vehicles were owned at 31 March 2015: the original bought 1 April 2012 and a second bought 31 August 2014 for R125 000; vehicles are depreciated at 20% p.a. straight-line and the year's charge is R69 583. Equipment is depreciated at 10% p.a. diminishing balance; all of it was bought on 30 September 2013; equipment costing R200 000 was sold for R170 000 on 30 September 2014. Closing inventory is R26 000. Interest at 10% p.a. on the fixed deposit (invested 1 April 2014) must still be provided. Credit losses for the year are R600. Prepare the property, plant and equipment note for the year ended 31 March 2015 (total column may be omitted), rounding to the nearest rand.

8. May/Jun 2015, Q2.27 marks

   Using the Tiger Stores information, prepare the asset section of the statement of financial position as at 31 March 2015, in line with IFRS.

9. Oct/Nov 2014, Q4.112 marks

   Petro Deliveries at 31 July 2013: vehicles at cost R600 000, accumulated depreciation on vehicles R120 000. The fleet is four delivery vehicles of equal value bought on 1 August 2012. On 30 April 2014 one vehicle was traded in at R80 000 against a new delivery vehicle costing R180 000, financed with a 9% p.a. loan from Capt Bank. Vehicles are depreciated at 20% p.a. straight-line. Prepare the accumulated depreciation: vehicles account, properly closed off, at 31 July 2014, naming the contra accounts and showing calculations.

10. Oct/Nov 2014, Q4.24 marks

    Using the Petro Deliveries information, prepare the asset realisation account, properly closed off, at 31 July 2014.

11. May/Jun 2014, Q3.19.5 marks

    On 31 March 2013 Laura Mapetla traded in an old machine (purchase price R12 000, accumulated depreciation R8 000 at 31 December 2012) for a new machine costing R20 000, receiving a trade-in value of R5 000. Machinery is depreciated at 20% p.a. on the diminishing balance. Ignore VAT. Disclose the profit or loss on disposal and the depreciation in the statement of profit or loss and other comprehensive income for the year ended 31 December 2013, per IFRS, showing calculations.

12. May/Jun 2014, Q3.23.5 marks

    Using the L Mapetla information, disclose property, plant and equipment in the statement of financial position at 31 December 2013 per IFRS (the note is not required), showing calculations.

13. Oct/Nov 2013, Q3.117 marks

    T Bonsai runs a small letting business (Bonsai Traders) from home with year end 31 December 2012. Balances: capital R153 850; drawings R4 567; land and buildings at cost R273 560; vehicle at cost R60 000 with accumulated depreciation R36 000 at 1 January 2012; equipment at cost R40 000 with accumulated depreciation R5 500 at 1 January 2012; debtors control R37 897; consumable stores on hand (31 December 2011) R19 250; bank R10 087; petty cash R257; creditors control R16 568; municipality levy R3 000; rent income R50 000; insurance R4 500; water and electricity R3 800; mortgage R200 000. Total comprehensive income for the year was R3 675 after these adjustments: consumable stores on hand at year end R17 250; a R3 500 direct deposit for January 2013 rent appears on the December bank statement and is recorded in the bank account; December's water and electricity of R500 (and January's R450) will only be paid in February 2013; December's insurance premium of R1 500 still has to be provided for; equipment costing R8 000 was bought on 1 July 2012 with installation costs of R1 500; interest on the mortgage at 5% p.a. for the year must still be provided; on 1 September 2012 a vehicle costing R5 000, bought on 1 January 2009, was sold for cash; depreciation is 20% p.a. straight-line on vehicles and 10% p.a. straight-line on equipment. Prepare the property, plant and equipment note for the year ended 31 December 2012 (the total column may be omitted), rounding to the nearest rand.

14. Oct/Nov 2013, Q3.213 marks

    Using the Bonsai Traders information, prepare the statement of financial position as at 31 December 2012, showing all calculations and rounding to the nearest rand.

15. May/Jun 2013, Q4.18 marks

    CAMP Dealers (year end 28 February 2013) had at 1 March 2012 machinery at cost R220 000 with accumulated depreciation R22 000 and equipment at cost R70 000 with accumulated depreciation R7 000. In May 2012 machinery was bought for R47 000 and equipment for R56 400 (both excluding VAT), and a machine bought on 1 March 2011 for R50 000 was sold for R33 000 excluding VAT. On 1 February 2013 equipment costing R36 000 (excluding VAT) was bought on credit from AZH Design. Machinery is depreciated at 10% p.a. straight-line and equipment at 10% p.a. on the diminishing balance. Calculate the depreciation on machinery and on equipment for the year.

16. May/Jun 2013, Q4.217 marks

    Using the CAMP Dealers information, prepare and properly balance the following general ledger accounts for the year ended 28 February 2013: machinery at cost (4), equipment at cost (4), accumulated depreciation: machinery (5) and asset realisation (4).