Answer to Question #157748 in Accounting for Jane Muthoni ndirangu

Question

QUESTION ONE (THIRTY MARKS)

a) The following information relates to the Motor Vehicle account of Ayieye & Associates:

Asset Date 

purchased 

Amount 

(Kes)

Estimated 

Useful life

Residual 

Value (Kes)

Date of 

disposal

Proceeds from 

Disposal (Kes)

KAA 111A 01:04:2015 775,000 5 years 380,000 01:07:2018 450,000

KBB 222B 01:10:2016 900,000 5 years 550,000

KCC 333C 01:01:2018 1,500,000 5 years 900,000

Additional information:

i) The company uses the straight line method in providing for depreciation and its policy is 

to charge a full year’s depreciation on its assets in the year of purchase and not in the 

year of disposal.

ii) The financial year end of the company is to 31st December

Required:

i) Determine the profit or loss on the disposal of KAA 111A (2 marks)

ii) Prepare the Provision for depreciation accounts for the years 2015 – 2018 (6 marks)

iii) Show the Motor vehicle account For the years 2015 – 2018 (5 marks)

iv) Show the Motor vehicle disposals account for the year 2018 (2 marks)

Answer 1

Dear Jane Muthoni ndirangu, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order