Question: Question Two Tindo Itd. bought a motor van KD-1 1/1/2018 for Sh. 800,000 paying by cheque. On 1/04/2019, the company bought another motor van KD-2

Question Two Tindo Itd. bought a motor van KD-1 1/1/2018 for Sh. 800,000 paying by cheque. On 1/04/2019, the company bought another motor van KD-2 for Sh. 1,200,000 on credit from Kim Motors. On 30/06/2021, the company traded in KD-1 for machinery valued at Sh. 500,000. The company depreciates motor vans at 10% p.a and machinery at 8% p.a respectively using the reducing balance method and on pro rata basis. Required: Open the following accounts, post the above transactions and make the necessary depreciation adjustments for the years ending 31s December 2018, 2019, 2020 and 2021; i) Motor van account (2 marks) ii) Machinery account (1 marks) iii) Motor van provision for depreciation account (3 marks) iv) Machinery provision for depreciation account (1 marks) Motor van disposal account (2 marks) vi Profit and Loss account (extract only) (1 marks)

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