9.7 Vincenzo's balance sheet at 31 August 20X7 shows the following balances in respect of fixed assets:

£

Buildings at cost 306 000 Less: accumulated depreciation

(18 360)

Net book value 287 640 Motor vehicles at cost 48 770 Less: accumulated depreciation

(16 470)

Net book value 32 300 Fixtures and fittings at cost 12720 Less: accumulated depreciation

(6 360)

Net book value 6 360 In the year ending 31 August 20X8 no purchases or sales of fixed assets are made. Vincenzo depreciates fixed assets as follows:

• Buildings at 2% per annum on cost on the straight-line basis.

• Motor vehicles at 25% per annum on the reducing balance basis.

• Fixtures and fittings (which were all purchased at the same time) over ten years on the straight-line basis.

First, calculate the total charge to Vincenzo's profit and loss account in respect of depreciation for the year ending 31 August 20X8. Secondly, show how fixed assets will be presented in Vincenzo's balance sheet at 31 August 20X8.