Assets

Fixed assets and depreciation

Straight-line depreciation spreads the cost less the residual value evenly over the useful life.

CAPS

Grade 11 · Accounting · Assets

Accounting is a system: document, journal, ledger, then the statement.

  • The papers

    Grade 11 centres on partnerships, reconciliations, fixed assets and VAT, still from source documents through to statements.

  • The logic

    Assets equal owner’s equity plus liabilities. Every entry needs a source. VAT on sales is output VAT. VAT on qualifying purchases is input VAT. Profit is not the same as cash.

  • The relation

    (Cost − residual value) / useful life. Straight-line depreciation for one year

  • How a marker reads it

    Do not divide the full cost by the years if a residual value was given.

Each paper is 150 marks. A foreign total that does not balance is wrong even if the individual entries look neat. Show the note or the calculation the face of the statement came from.

DrCrassetequity

Worked example

A courier in Bloemfontein buys a bakkie for R35000. It should last 5 years and then be worth R7000. Calculate the straight-line depreciation for one year.

Simplified approach

Straight-line depreciation spreads the cost less the residual value evenly over the useful life.

Culture note

A courier in Bloemfontein, depreciating a bakkie.

Formulas

(Cost − residual value)useful life

Straight-line depreciation for one year

Step 1 / 6

Amount to depreciate

Cost R35000 minus residual value R7000 is R28000.

Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

4. Step-by-step working

  1. 01

    Each year

    Divide by 5. Depreciation is R5600 a year.

    (Cost − residual)life
  2. 02

    Step F — Box the answer with its unit

    Depreciation per year=(R35000 − R7000)5=R5600.

More worked examples

Board walkthroughs on this topic. Open one, copy the working, then try the next.

Example 1 / 20

A vehicle costing R250 000 was bought on 1 September 2025. Depreciation is 20% p.a. on cost. The financial year ends on 28 February 2026. Calculate depreciation for the year.

4. Step-by-step working

  1. 01

    Identify the given

    September to February = 6 months.

    612
  2. 02

    Calculate

    250 000×20%×612=R25 000.

    250 000×0,20×612=25 000

How we got there

Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.

Explain in another language · 11

1. What is the question asking?

Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: A vehicle costing R250 000 was bought on 1 September 2025. Depreciation is 20% p.a. on cost. The financial year ends on 28 February 2026. Calculate depreciation for the year.

Before any working — hunt first

Given

Numbers and units already in the sentence: R250 · 000 was · 1 September · 2025 · 20% · 28 February · 2026. Copy each one into a column. A name without a number is not given.

Missing

After you copy the given, the letter that still has no number is missing. The paper is pointing at: depreciation for the year. Circle that word — that is the missing variable.

Find

We are required to find: depreciation for the year. Write that as a symbol on the left, with a question mark, before you touch a formula.

Calculate

Write 612 with empty letters. Cross out every letter that already has a number. Calculate the letter that is still standing — that gives depreciation for the year.

In other words — as if you have never seen this before

If you have never seen this before: For an asset bought during the year, depreciate only for the months it was owned. We will name a method in words, write the formula with no numbers, then substitute one line at a time.

2. What do we already know?

Cost R250 000, 20% on cost, 6 months used (Sept to Feb).

3. Which method — and why this one?

For an asset bought during the year, depreciate only for the months it was owned.

4. Step-by-step working

  1. 01 / 05

    Identify the given

    September to February = 6 months.

    612

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  2. 02 / 05

    Calculate

    250 000×20%×612=R25 000.

    250 000×0,20×612=25 000

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  3. 03 / 05

    Step G — Sense-check the size

    Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.

    Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.

  4. 04 / 05

    Step F — Box the answer with its unit

    Depreciation R25 000.

    Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.

  5. 05 / 05

    Step H — What the marker is looking for

    On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.

    Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.

5. The answer

Depreciation R25 000.

Copy onto your answer sheet — in this order

Formula: 612

Answer: Depreciation R25 000.

6. Check it like a marker

A full year would be R50 000; half a year gives half of that.

7. A trap first-timers fall into

First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”

Ntsako · fx-991ZA PLUS. Tap to calculate.