18 An extract from Hein Set’s statement of financial position at 31 December 2019 showed the

following:

Fixtures Cost $ 115 000

Accumulated
$ 77 625
Depreciation
During the year ended 31 December 2020 the following transactions took place.

On 1 January 2020 fixtures, $30 000, were purchased by cheque.

On 30 June 2020 fixtures were sold for $6000, which was received by cheque. These fixtures had
originally been purchased on 1 July 2018 for $20 000.

Hein Set depreciates fixtures on a straight-line basis. She assumes fixtures will have a useful life of
four years, at which time the scrap value will be 10% of original cost. Depreciation is charged from
the date of purchase and no depreciation is charged in the year of disposal.
(15)
REQUIRED
You can use this space for your workings

19
Turn over
 Fixture Account
Date Narration $ Date Narration $

Provision for Depreciation Account

Date Narration $ Date Narration $

Asset Disposal Account

Date Narration $ Date Narration $

(Total for Question 18 = 15 marks)

TOTAL FOR SECTION B = 75 MARKS

TOTAL FOR PAPER = 100 MARKS

20