Answer to Question #156490 in Accounting for Abdul Rehman Sheikh

Question

6.4 DIANA
Diana leases out German sports cars. She started business on 1st Jan 2010 and has decided to depreciate the cars on a straight line bases at 25% per annum on cost at the year end. During the year 2010 to 2013 the following purchases took place.
2010 Acquired 20 Porsche 924 turbos at a cost of Rs. 18,600,000 each.
2011 Purchased 6 Porsches for a total cost of Rs. 108,600,000.
2012 Purchased a further 2 cars costing Rs. 19,800,000 each.
2013 Purchased 15 cars for Rs. 21,000,000 each.
Diana prepares account to 31st Dec each year.
Required:
Prepare a vehicle account and accumulated depreciation account and a depreciation account for the years 2010 to 2013.

Answer 1

let's make the following transactions:

purchase:

2010: Debit equipment to setpoint credit settlements with suppliers - 372 000 000 - purchase of turbines

2011: Debit investments in non-current assets credit settlements with the supplier -651 600 000 - purchase of 6 porsches

2011: Transfer of objects for installation: Debit investments in non-current assets Credit equipment to setpoint: 372 0000

2012:Debit investments in non-current assets credit settlements with the supplier -39 600 000 - purchase of 2 cars

2013: Debit investments in non-current assets credit settlements with the supplier -39 600 000 - purchase of 15 cars - 315 000 000

registration:

2011: Debit fixed assets Сredit investments in non-current assets: 1 023 600 000

2012:Debit fixed assets Сredit investments in non-current assets - 39 600 000

2013: Debit fixed assets Сredit investments in non-current assets - 315 000 000

Depreciation: