Exercise 1: The balance sheet as at 31/12/2016 of Alpha enterprise the following items: Item Amount Depreciation Net amount Transport equipment 38 500 000 13 475 000 25 025 000 The transport equipment was purchased during 2014 and depreciated using the straight line method. On 31/12/2016 the depreciation amounted to 5 775 000 1. Calculate the depreciation rate of the Transport equipment. 2. Find the acquisition date of Transport equipment. 3. Prepare the depreciation entry on 31/12/2016 Exercise 2: The following schedule indicates the situation of the doubtful clients at the beginning of the financial period 2015, and the amounts paid out by them during 2015. Doubtful Clients as at Amount Provision constituted Sums paid during 2015 1/1/2015 on Dec.31.2014 7,000,000 50% 2.000.000 2,500,000 40% R 5. 500,000 30% 2,500,000 The situation of client A has changed and he is no more doubtful client Client R, a provision of 70% of the remaining balance should be constituted. Client J, you should consider his debt as totally irrecoverable. On the other hand, you should consider the debt of client H amounted 3,000,000 as totally irrecoverable. Required: Record all necessary entries on Dec 31, 2015