Distance Limited owned three lorries at 1 April 20X6:

A Purchased 21 May 20X2 Cost £31,200

B Purchased 20 June 20X4 Cost £19,600

C Purchased 1 January 20X6 Cost £48,800

Depreciation is charged annually at 20% on cost on all vehicles in use at the end of the year.

During the year ended 31 March 20X7, the following transactions occurred:

(i) 1 June 20X6 lorry B was involved in an accident and considered to be a write off by the insurance company which paid £10,500 in settlement.

(ii) 7 June 20X6 lorry D was purchased for £32,800

(iii) 21 August 20X6 lorry A was sold for £7,000

(iv) 30 October 20X6 lorry E was purchased for £39,000

(v) 6 March 20X7 lorry E was considered not to be suitable for carrying the type of goods required and was exchanged for lorry F. The value of lorry F was deemed to be £37,600.

Required:

Prepare the ledger T-accounts recording these transactions for the year ending 31 March 20X7 and bring down the balances at 1 April.