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Pink Trading purchased a truck for R350000 on 1 September 2019. The estimated residual value...

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Accounting

Pink Trading purchased a truck for R350000 on 1 September 2019. The estimated residual value
of the truck is R120000 with depreciation at 15% per year on the diminishing balance method.
Pink Trading extended operations by purchasing an excavator for R312000 on 1 June 2020. The
owner decided to sell it for R155000 on 31 December 2021 and replace it with new equipment of
R285000 on the same day. Plant and machinery are depreciated over a period of four years. All
property, plant and equipment were bought cash.
Required:
2.1
2.2
Record all the entries relating to the equipment in the general journals of Pink Tradings
financial records until 31 March 2022.
[30]
Present the property, plant and equipment on the Statement of Financial Position for the
year ended 31 March 2022 if Pink Trading applied the straight-line depreciation method on
the property, plant and equipment.

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