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Equipment was purchased by VW Traders on 1 March 2013 for N$25 800 cash. The expected...

Equipment was purchased by VW Traders on 1 March 2013 for N$25 800 cash. The expected
economic life of the equipment is 5 years and the expected residual value at the end of 5 years
is N$800. The financial year of the business ends on the last day of February each year.

Calculate the depreciation per annum using the straight line method and
complete the table with the necessary values.

End of financial
year
Cost Price Annual
Depreciation
(N$)
Accumulated
Depreciation (N$)
Carrying Value
(N$)
28 Feb 2014 N$25 800
28 Feb 2015 N$25 800
28 Feb 2016 N$25 800
28 Feb 2017 N$25 800
28 Feb 2018 N$25 800

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