Answer to Question #145230 in Accounting for Thilivhali

Question

Hybird dealers bought computer equipment for R54 000 on 1 July 2018. The equipment is depreciated at 20 %according to the diminishing balance method


Prepare the depreciation and closing transfer entries in the general journal of hybird dealers on 31 March 2019 and 31 March 2020

Answer 1

$$Solution$$

The table below the depreciation and transfer entries.

The journal entries for the year 2020 will be;

Dr. Depreciation Expenses R9,180

Cr. Depreciation Account R9,180