A motor vehicle which cost £12,000 was bought on credit from Trucks Ltd on 1 January 20X6. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25 per cent per annum under the reducing balance method.

Required:

Prepare the journal entries, the motor vehicle account, and the accumulated provision for depreciation on motor vehicles account for the first two years of the motor vehicle’s working life.