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Learner : CALA Guide
Learning Area: Principles of Accounting
CALA component: One
Level: Form 4
CALA type: Practical Activityplus.pen and paper
Syllabus: Year end Adjustments
Syllabus sub-topic: Depreciation
CALA title: Calculation of depreciation of assets the school
Competencies/Skills: Data collection , measuring and problem
solving
Background The school has many non-current assets which has never been subjected to depreciation.The school Administration has decided that it would be helpful to identify the causes of depreciation and calculate the depreciation value of the assets since they had been acquired.Choose any asset at the school and calculate the depreciation then submit the information to the school administration for decision making.
THE CALA
Activity A
i)Define depreciation
ii)Identify 4 causes of depreciation
iii)State any two methods of calculating depreciation
Activity B
i)ldentify any asset you want to calculate depreciation.
ii)Probe or determine the cost of the asset when it was bought.
iii)Determine the value of the asset at the end of its useful life (Residual value)
iv)Determine the number of years in which the asset is expected to be used by th school
Activity C
i)Calculate depreciation using the Straight line method
ii)Calculate depreciation using the reducing balance method.You are to choose the appropriate depreciation rate.
Activity D
i)Prepare the Accumulated Provision for Depreciation account
ii)Prepare the non current asset disposal account.
iii)Compare the two methods of calculating depreciation
How will you be assessed
Your answers and workings on all four activities will be assessed. Some CALA tips Remember that you are trying to show your teacher highest level of understanding of this toic, so give clear answers and show your workings when requested.
