Messrs Andy Carriers make up their accounts to 31st December, annually. At 31st December, 2012 their fleet of lorries were as follows: Vehicle Road Star Road King Road Master $ 30,000 $ 22,500 $ 36,000 $ 18,000 $ 48,000 $ 24,000 Cost Accumulated Depreciation Depreciation was charged @ 25 per cent per annum on straight line method, a full year's depreciation being charged in the year of acquisition and none in the year of disposal. They decided to modernise the fleet and the following transactions took place : On 31st March, 2013 purchased lorry 'Road Finder' for $ 60,000 giving lorry, Road Star' in part exchange value $ 12,000. On 30th April, 2013 purchased lorry 'Road Eagle' for $ 60,000. On 30th June, 2014 sold 'Road King' for $ 7,500 and purchased lorry Road Hawk for $ 36,000. On 31st July, 2014 a second hand lorry, 'Road Worthy' was purchased for $ 16,800. You are required to prepare Motor Lorries A/c and Lorry Disposal A/c.

Messrs Andy Carriers make up their accounts to 31st December, annually. At 31st December, 2012 their fleet of lorries were as follows: Vehicle Road Star Road King Road Master $ 30,000 $ 22,500 $ 36,000 $ 18,000 $ 48,000 $ 24,000 Cost Accumulated Depreciation Depreciation was charged @ 25 per cent per annum on straight line method, a full year's depreciation being charged in the year of acquisition and none in the year of disposal. They decided to modernise the fleet and the following transactions took place : On 31st March, 2013 purchased lorry 'Road Finder' for $ 60,000 giving lorry, Road Star' in part exchange value $ 12,000. On 30th April, 2013 purchased lorry 'Road Eagle' for $ 60,000. On 30th June, 2014 sold 'Road King' for $ 7,500 and purchased lorry Road Hawk for $ 36,000. On 31st July, 2014 a second hand lorry, 'Road Worthy' was purchased for $ 16,800. You are required to prepare Motor Lorries A/c and Lorry Disposal A/c.

Name: Messrs Andy Carriers make up their accounts to 31st December, annuall
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Description: Messrs Andy Carriers make up their accounts to 31st December, annually. At 31s*December, 2012 their fleet of lorries were as follows:VehicleRoad StarRoad KingRoad Master$ 30,000$ 22,500$ 36,000$ 18,000$ 48,000$ 24,000CostAccumulated DepreciationDepr

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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