Grade 11 · CAPS
Grade 11 Fixed Assets
Accounting practice questions and a worked example
Grade 11 Accounting fixed asset questions give you a fixed asset note with missing figures and details from the asset register. You calculate depreciation on cost and on the diminishing balance for old, new and sold assets, find the carrying value of an asset sold, and prepare the Asset Disposal account. They come from the Eastern Cape Department of Education’s Grade 11 November papers for 2023, 2024 and 2025, each with the answer from the marking guideline.
Worked example
QUESTION 4: VAT AND FIXED ASSETS
4.2 FIXED ASSETS
The information relates to SS Consultants for the financial year ended 28 February 2023. The owner, Sydney, changed the recording of equipment.
• It was decided to record the five computers separately from other equipment.
• The depreciation policy was amended on 1 March 2022, as follows:
o Computers: 25% on cost
o Other equipment: 20% on carrying value
• Three of the five computers were replaced for later models on 31 July 2022. Note that the old computers were purchased on the same date for R17 200 each. An EFT payment for the full amount was paid on that date.
4.2.1 Provide TWO reasons why Sydney wanted to replace some assets.
Answer & explanation
TWO valid reasons:
• They are old / out-dated / obsolete
• No longer productive, or productivity has decreased
• Require more maintenance: becoming expensive to maintain
• Better models / brands / quality products are now available
• Wants to give the business a facelift: change the image
When considering why Sydney might want to replace some assets, think about the common reasons businesses update their equipment.
1. **Obsolescence**: Technology, especially computers, becomes outdated quickly. The old computers may no longer support new software or run efficiently, making them obsolete.
2. **Improved Models**: Newer models often have better features, faster processing speeds, and improved reliability. Upgrading to these can enhance productivity and efficiency.
These reasons align with the need to keep the business competitive and efficient, justifying the replacement of the computers.
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Question 1 of 3
QUESTION 1: ACCOUNTING EQUATION AND FIXED ASSET NOTE
1.2 FIXED (TANGIBLE) ASSETS
The information relates to SANDI BROTHERS for the financial year ended 28 February 2023.
1.2 Calculate the missing figures indicated by (i) to (iii) on the Fixed Asset Note.
Learn from each answer, right or wrong.
Try again before revealing the solution.
More practice questions
Explore additional Grade 11 Fixed Assets questions.
- 2QUESTION 4: VAT AND FIXED ASSETS 4.2 FIXED ASSETS The information relates to SS Consultants for the financial year ended 28 February 2023. The owner, Sydney, changed the recording of equipment. • It was decided to record the five computers separately from other equipment. • The depreciation policy was amended on 1 March 2022, as follows: o Computers: 25% on cost o Other equipment: 20% on carrying value • Three of the five computers were replaced for later models on 31 July 2022. Note that the old computers were purchased on the same date for R17 200 each. An EFT payment for the full amount was paid on that date. 4.2.2 Explain why Sydney wanted to record the computers separately.
- 3QUESTION 1: FIXED ASSETS AND INTERNAL CONTROLS The following information relates to Asande Traders for the year ended 29 February 2024. 1.1 Calculate the missing figures denoted by (i) to (iv) in the fixed asset note.
- 4QUESTION 1: FIXED ASSETS AND INTERNAL CONTROLS The following information relates to Asande Traders for the year ended 29 February 2024. 1.2 Prepare the Asset Disposal account.
- 5QUESTION 1: FIXED ASSETS AND INTERNAL CONTROLS The following information relates to Asande Traders for the year ended 29 February 2024. 1.3 Calculate the percentage increase in the value of Land and Buildings if their market value as at 29 February 2024 amounts to R5 500 000.
Common mistakes
- Depreciating a sold asset for the whole year. A vehicle sold after ten months is depreciated for ten months: 360 000 × 12% × 10/12 = 36 000.
- Leaving this year’s depreciation out of the Asset Disposal account. Accumulated depreciation on the vehicle sold is 215 000 + 36 000 = 251 000.
- Depreciating a new asset from the start of the year. Equipment bought on 1 July gets eight months: 90 000 × 10% × 8/12 = 6 000.
More Grade 11 Accounting topics
Aligned to CAPS Grade 11 Accounting — Fixed Assets. Curriculum source: CAPS for the FET Phase, Department of Basic Education.
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