Tindo ltd. bought a motor van KD-1 1/1/2018 for Sh. 800,000 paying by cheque. On 1/04/2019,...

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Tindo ltd. 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 31st December 2018, 2019, 2020 and 2021; i) Motor van account ii) iii) iv) vi) Machinery account Motor van provision for depreciation account Machinery provision for depreciation account Motor van disposal account Profit and Loss account (extract only) (2 marks) (1 marks) (3 marks) (1 marks) (2 marks) (1 marks) Tindo ltd. 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 31st December 2018, 2019, 2020 and 2021; i) Motor van account ii) iii) iv) vi) Machinery account Motor van provision for depreciation account Machinery provision for depreciation account Motor van disposal account Profit and Loss account (extract only) (2 marks) (1 marks) (3 marks) (1 marks) (2 marks) (1 marks)

Answer rating: 100% (QA)

i Motor Van Account Date Particulars Debit Credit 112018 Motor Van KD1 800000 142019 Motor Van KD2 1... View the full answer