The assets account The provision for depreciation accounts. The profit and loss account extract.

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
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Kaisa Ltd has a stream of assets and the following were extracted from its books:

1st January, 1990.        Bought a motor vehicle costing ¢1,500.

4th April, 1990.           Bought plant and machinery costing ¢4,700

10th October, 1992.     Bought motor vehicle costing ¢2,300.

2nd December, 1992.   Bought Plant and machinery costing ¢8,200

The depreciation policy of the firm is to depreciate all their assets by 15% on month by month basis.

You are required to prepare the following accounts:

  1. The assets account
  2. The provision for depreciation accounts.
  • The profit and loss account extract.
  1. The balance sheet extract.

Assuming the company uses:

  • The straight line method to depreciate the motor vehicle.

The reducing balance method to depreciate the plant and machinery

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