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.