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  1. business
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  3. impairment of an asset (v1) (20 marks) the followi

IMPAIRMENT OF AN ASSET (V1) (20 MARKS) The following transactions took place in the books...

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Accounting

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IMPAIRMENT OF AN ASSET (V1) (20 MARKS) The following transactions took place in the books of Legend Ltd. who has a 28 February year-end. - Bought a delivery vehicle on 1 March 2018 with a cost of R1125000 (receipt 107). - The recoverable amount of the delivery vehicle on 28 February 2020 was 48% of the cost of the vehicle. - On 28 February 2021 the vehicle had an estimated recoverable amount of R450 000. - Legend Ltd. depreciates its vehicles over 5 years using the straight-line method, with a residual value of nil. REQUIRED: - Prepare the general journal entries with narrations in the accounting records of Legend Ltd for the financial years ended 28 February 2019 - 2022 to account for all transactions related to the delivery vehicle. Closing entries are not required

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