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Propati Limited has a fleet of cars that are used to distribute goods to the market. As at July 1, 2020, the cost of the cars was ₦750,000,000, and their accumulated depreciation was ₦30,500,000. On January 1, 2021, the company bought a new car for ₦2,800,000. One of the old cars, which was acquired 3 years ago at a cost of ₦1,000,000 with accumulated depreciation of ₦600,000, was accepted by the seller in part exchange at a value of ₦480,000. The reporting date of Propati Limited is December 31, and the entity charges depreciation using the straight-line method.
Required:
i. Calculate the gain or loss on disposal of the old car. (2 Marks)
ii. Prepare the following ledger accounts in respect of the transactions:
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In public sector accounting, assets and liabilities are valued at their current market values or at fair prices, which is defined as the amount of money that would have to be paid to acquire the asset on the valuation date.
Required: Explain how you would ascertain the current market values of the following public sector assets:
i) Securities;
ii) Motor Vehicles;
iii) Office buildings.
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a) Those charged with governance describe the role of persons entrusted with an entity’s supervision, control, and direction, thus ordinarily accountable for ensuring that the entity achieves its objectives.
Required:
Explain FOUR (4) duties and responsibilities of those charged with governance.
(10 marks)
b) On 1 January 2020, the following was extracted from the books of Gaga:
| Item | Amount (GH¢) |
|---|---|
| Motor vehicles at cost | 150,800 |
| Accumulated depreciation on vehicles | 95,700 |
During the year, the following occurred:
Required:
Prepare the following accounts for the year ended 31 December 2020.
i) Motor Vehicle at cost.
ii) Motor Vehicle accumulated depreciation.
iii) Disposal account for Motor Vehicle C.
(10 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Propati Limited has a fleet of cars that are used to distribute goods to the market. As at July 1, 2020, the cost of the cars was ₦750,000,000, and their accumulated depreciation was ₦30,500,000. On January 1, 2021, the company bought a new car for ₦2,800,000. One of the old cars, which was acquired 3 years ago at a cost of ₦1,000,000 with accumulated depreciation of ₦600,000, was accepted by the seller in part exchange at a value of ₦480,000. The reporting date of Propati Limited is December 31, and the entity charges depreciation using the straight-line method.
Required:
i. Calculate the gain or loss on disposal of the old car. (2 Marks)
ii. Prepare the following ledger accounts in respect of the transactions:
Find Related Questions by Tags, levels, etc.
In public sector accounting, assets and liabilities are valued at their current market values or at fair prices, which is defined as the amount of money that would have to be paid to acquire the asset on the valuation date.
Required: Explain how you would ascertain the current market values of the following public sector assets:
i) Securities;
ii) Motor Vehicles;
iii) Office buildings.
Find Related Questions by Tags, levels, etc.
a) Those charged with governance describe the role of persons entrusted with an entity’s supervision, control, and direction, thus ordinarily accountable for ensuring that the entity achieves its objectives.
Required:
Explain FOUR (4) duties and responsibilities of those charged with governance.
(10 marks)
b) On 1 January 2020, the following was extracted from the books of Gaga:
| Item | Amount (GH¢) |
|---|---|
| Motor vehicles at cost | 150,800 |
| Accumulated depreciation on vehicles | 95,700 |
During the year, the following occurred:
Required:
Prepare the following accounts for the year ended 31 December 2020.
i) Motor Vehicle at cost.
ii) Motor Vehicle accumulated depreciation.
iii) Disposal account for Motor Vehicle C.
(10 marks)
Find Related Questions by Tags, levels, etc.
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