Assume that you have been appointed as a Fixed Asset Manager in Full Speed Limited. Your role

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Question:

Assume that you have been appointed as a Fixed Asset Manager in Full Speed Limited. Your role is to maintain all the Fixed Assets Ledger balances and account for the depreciation on them. The management of the company asked you an updated ledger balance for its Vehicle Account, Accumulated depreciation on vehicles and gain / (loss) on sale vehicles. Upon scrutiny of the financial statements of Full Speed Limited for the year ended 30 June 2017 you found the following details:

Description GBP £

Vehicles - at Cost 652,013

Less: Accumulated depreciation (244,505)

WDV of vehicles 407,508

Full Speed Limited provides depreciation on vehicles @ 15% per annum on written down values. Depreciation on addition/deletion is provided in proprtion to the period of use. Other related information is as follows:

i. On 1 August 2017, a vehicle that was acquired at a cost of £ 8,500 on 1 July 2015 was exchanged for a new vehicle. The balance was settled with a cheque fpr £ 3,500. The list price of the new vehicle was £ 9,000

ii. Three new vehicles were purchased on 1 December 2017 for £ 12,500 each.

iii. In February 2018, a vehicle having a written down value of £ 5,500 was repaired at a cost of £ 250,000. It is expected that the repairs would improve the efficiency of the vehicle significantly.

iv. On 30 June 2018, a vehicle purchased on 1 January 2016 at a cost of £ 15,000 was sold for £ 13,500.