Learner cala guide

Cala component D

Learning area:. Principles of Accounting

Level. Ordinary Level

Cala Type. Investigative and practical

Syllabus topic. Year end adjustments

Syllabus sub topic. Depreciation

Cala tittle. Financial Literacy

Competencies/ skills

 Data collection and classification

 Research and analysis

 Presentation and interpretation

 Enquiry

Background

Many businesses do not incorporate depreciation when estimating net profit. As a result,
businesses fail to come up with a prudent profit estimation resulting in business failure.

The CALA

Come up with a research plan inorder to offer a solution to the above-mentioned problem. The
plan should encompass the following parts: Part A and Part B

Part A

Research on a non current asset owned by a small business of your choice with the aim of
gathering information required to calculate depreciation on that particular asset. 10 marks

Part B

Prepare a depreciation schedule on a non current asset in part A. 20 marks

Cala tips

 Select a non current asset with a useful life of at least five years

 The schedule should have four columns for cost, depreciation, accumulated depreciation
and net book value.

 Use an interview guide and a picture as proof of research.