J.J traders bought a van in Jan 2003 for Sh 200,000. The policy of the company...

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J.J traders bought a van in Jan 2003 for Sh 200,000. The policy of the company is to depreciate motor vehicles at a rate of 25% using straight line method. The motor van was sold in March 2006 at a cash price of Sh 60,000 (full depreciation is charged on the year of acquisition and non on the year of disposal) Show the entries of depreciation expense, accumulated depreciation since 2003 as well as the entries at the time of disposal in 2003. J.J traders bought a van in Jan 2003 for Sh 200,000. The policy of the company is to depreciate motor vehicles at a rate of 25% using straight line method. The motor van was sold in March 2006 at a cash price of Sh 60,000 (full depreciation is charged on the year of acquisition and non on the year of disposal) Show the entries of depreciation expense, accumulated depreciation since 2003 as well as the entries at the time of disposal in 2003.

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