Answer to Question #146062 in Accounting for methembe dube

Question

Q.1.1 Hybrid Dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20% according to the diminishing balance method.

Required:
Prepare the depreciation and closing transfer entries in the general journal of
Hybrid Dealers on 31 March 2019 and 31 March 2020. (15)

Answer 1

$$Solution$$

Depreciation and Closing transfer entries are shown in the table below.

The journal entries for the year 2020 will be;

$Dr\ Depreciation\ Expenses\ Acc\ R9,180\\ Cr\ Depreciation\ Acc\ R9,180$

$Dr\ P/L\ Acc\ 9,180\\ Cr\ Expenses\ Acc\ 9,180$