The directors of K Limited prepare financial statements to 31 December. They have provided the following information. Balances at 1 January 2019 $ Motor vehicles cost 180000 Motor vehicles provision for depreciation 105000 During the year ended 31 December 2019 1 A new motor vehicle was acquired for $50000. 2 A motor vehicle which had cost $40000 and been depreciated by $17500 was sold for $16500. The company policy is to depreciate motor vehicles at 25% per annum using the reducing balance method. A full year’s depreciation is charged in the year of acquisition and none in the year of disposal. REQUIRED (b) Prepare for the year ended 31 December 2019: (i) motor vehicles provision for depreciation account Motor vehicles provision for depreciation account $ $ [6] 9 © UCLES 2020 9706/22/F/M/20 [Turn over (ii) disposal account

Question text At the beginning of the financial year on 1 April 2020, a company had a balance on plant account of Sh 372,000 and on provision for depreciation of plant account of Sh 205,400. The company’s policy is to provide depreciation using the reducing balance method applied to the non-current assets held at the end of the financial year at the rate of 20% per annum. On 1 September 2020 the company sold for Sh 13,700 some plant which it had acquired on 31 October 2016 at a cost of Sh 36,000. Additionally, installation costs totalled Sh 4,000. During 2018 major repairs costing Sh 6,300 had been carried out on this plant and, in order to increase the capacity of the plant, a new motor had been fitted in December 2018 at a cost of Sh 4,400. A further overhaul costing Sh 2,700 had been carried out during 2019. The company acquired new replacement plant on 30 November 2020 at a cost of Sh 96,000, inclusive of installation charges of Sh 7,000. Calculate: (a) the balance of plant at cost at 31 March 2021 was Sh (b) the total (accumulated) provision for depreciation of plant at 31 March 2021 was Sh . This comprised: - Depreciation for year to 31 March 2017 of Sh - Depreciation for year to 31 March 2018 of Sh - Depreciation for year to 31 March 2019 of Sh - Depreciation for year to 31 March 2020 of Sh (c) the loss (profit/loss) on disposal of the plant was Sh this is because the book value of the plant at the date of sale was Sh 16,630

On 1 April 2017 Rosa purchased two motor vehicles costing $50 000 each.On 1 January 2019 she sold one of the motor vehicles for $35 500. The sale proceedswere received by cheque.Depreciation is charged at 20% per annum using the reducing balance method.A full year’s depreciation is charged in the year of purchase and none in the year ofdisposal.(d) Prepare the provision for depreciation – motor vehicles account for the yearended 31 March 2019. Balance the account on that date and bring the balancedown on 1 April 2019.

On 1st April 2015, NASA bought three Buses KAA, KBB and KCC at a cost ofKshs. 3m, 4m and 5m respectively. On 30th June 2017, KBB was sold forKshs.2.9m. NASA prefers to depreciate the three Buses at the rate of 10% p.a.Using the reducing balance method.Required :-Show how the following accounts would appear for the years 2015-2017:i Buses accountii Provision for depreciation on Buses accountiii Buses Disposal accountiv Profit & loss account extractsv Balance sheet extracts

Context: Miu is a sole trader and prepares her financial statements to 31 May each year. She depreciates her motor vehicles using the reducing balance method at a rate of 20% per annum. Depreciation is charged monthly Miu purchased a motor vehicle on 1 June 2013 for $152 000. On 1 March 2015, a new motor vehicle was purchased at a cost of $190 000.The old motor vehicle was part-exchanged at a value of $84000. The balance was settled by a bank loan repayable over 3 years. Prepare the motor vehicle provision for depreciation account for the years ended 31 May 2014 and 31 May 2015.

A Company purchased a new van for floral deliveries on March 31, 2021. The van cost Sh 6,800,000 with an estimated life of 10 years and Sh 1,200,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation is used and the company charges depreciation for the period the asset has been in existence. Hint: Write your answers with comma as in 1,000 not 1000. (a) The depreciable cost for the new van is Sh (b) The rate of depreciation is per cent. (c) The estimated depreciation expense for 2021 is