A company maintains its non-current assets at cost. A provision for depreciation account is used for each type of asset. Machinery is to be depreciated at the rate of 15 per cent per annum, and fixtures at the rate of 5 per cent per annum, using the reducing balance method. Depreciation is to be calculated on assets in existence at the end of each year, giving a full year’s depreciation even though the asset was bought part of the way through the year. The following transactions in assets have taken place:

You are to show:

(a) The machinery account.

(b) The fixtures account.

(c) The two separate provision for depreciation accounts.

(d) The non-current assets section of the statement of financial position at the end of each year, for the years ended 31 December 2012 and 2013.

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2012 1 January 1 July 2013 1 October Bought machinery 2,800, fixtures 290 Bought fixtures 620 Bought machinery 3,500 Bought fixtures 130 1 December The financial year end of the business is 31 December.