A motor vehicle which cost 12,000 was bought on credit from Trucks Ltd on 1 January 20X6.

Question:

A motor vehicle which cost £12,000 was bought on credit from Trucks Ltd on 1 January 20X6. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25 per cent per annum under the reducing balance method.


Required:

Prepare the journal entries, the motor vehicle account, and the accumulated provision for depreciation on motor vehicles account for the first two years of the motor vehicle’s working life.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: