D. Limited makes its accounts on 30 June every year. On 1 July 2018, the company's...

 

Transcribed Image Text:

D. Limited makes its accounts on 30 June every year. On 1 July 2018, the company's balance sheet included the following figures for non-current assets: Cost Accumulated Depreciation Sh. *000* 40,000 Land Buildings 22,000 Plant and machinery 16,000 Motor vehicles 6,000 Sh. Rate Nil Land Buildings 2% on cost Plant and machinery 15% on cost Motor vehicles 20% on cost '000' Nil 8,000 6,000 2,000 The company's policy is to charge depreciation at the following rates: A proportionate charge is made in the year of purchase, sale or revaluation of an asset. During the year ended 30 June 2020, the following transactions took place: 1. On 1 January 2019, the company decided to adopt a policy of revaluing its buildings. A professional valuer engaged for this purpose revalued the buildings at Sh.34 million. On 1 January 2019, a plant that had cost Sh.3 million was sold for Sh. 2500,000. Accumulated depreciation on this plant amounted to Sh.700,000. A new plant was then purchased at a cost of Sh.4 million. 3. On 20th April 2020, the business purchased anew motor vehicle costing sh.3600,000. Required: (a) The following ledge accounts to record the above transactions: 1. Asset account 2. Provision for depreciation account 3. Disposal account 4. Revaluation account (Total 50 marks) D. Limited makes its accounts on 30 June every year. On 1 July 2018, the company's balance sheet included the following figures for non-current assets: Cost Accumulated Depreciation Sh. *000* 40,000 Land Buildings 22,000 Plant and machinery 16,000 Motor vehicles 6,000 Sh. Rate Nil Land Buildings 2% on cost Plant and machinery 15% on cost Motor vehicles 20% on cost '000' Nil 8,000 6,000 2,000 The company's policy is to charge depreciation at the following rates: A proportionate charge is made in the year of purchase, sale or revaluation of an asset. During the year ended 30 June 2020, the following transactions took place: 1. On 1 January 2019, the company decided to adopt a policy of revaluing its buildings. A professional valuer engaged for this purpose revalued the buildings at Sh.34 million. On 1 January 2019, a plant that had cost Sh.3 million was sold for Sh. 2500,000. Accumulated depreciation on this plant amounted to Sh.700,000. A new plant was then purchased at a cost of Sh.4 million. 3. On 20th April 2020, the business purchased anew motor vehicle costing sh.3600,000. Required: (a) The following ledge accounts to record the above transactions: 1. Asset account 2. Provision for depreciation account 3. Disposal account 4. Revaluation account (Total 50 marks)

Answer rating: 100% (QA)

01Jul18 01Jul19 Dr Date 01Jul18 01Jan19 01Jul19 Date Dr Date Dr Date 01Jan19 Date Dr To balance bd P... View the full answer