Wexford Ltd, who prepare their financial statements on 31 December each year, provide for depreciation of their vehicles by a reducing balance method, calculated as 25 per cent on the balance at the end of the year. Depreciation of plant is calculated on a straight line basis at 10 per cent per annum on cost; a full year’s depreciation is charged in the year in which plant is acquired and none in the year of sale.
The statement of financial position for 31 December 20X8 showed:

During the year ended 31 December 20X9, the following transactions took place:

Required
a. Present the ledger accounts relating to the purchases and sales of vehicles and plant for the year ended 31 December 20X9.
b. Show the journal entries for depreciation for the year.

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Original cost Accumulated depreciation Net book value Vehicles £ 25,060 (14,560) 10,500 Plant £ 96,920 (50,120) 46,800