4.11 LO2/4/5 A firm makes up its accounts each year to 31 December, and the following transactions took place in respect of motor vehicles:

2015 1 January Truck 1 purchased for cash $40,000 30 July Truck 2 purchased $48,000

$24,000 deposit in cash Balance being spread over 12 monthly instalments of $2,000 2016 1 March Truck 3 purchased $48,000

$24,000 deposit in cash Balance as for Truck 2 30 July Truck 4 purchased $60,000 Truck 1 part-exchanged as deposit of $32,000 Cash $4,000 Balance as for Truck 2 2017 30 April Truck 5 purchased $60,000 Truck 2 part-exchanged as deposit of $36,000 Balance paid in cash Show the relevant extracts from the profit and loss accounts and balance sheets for 2015, 2016 and 2017.

Depreciation is to be based on 20% per annum reducing balance.