The year-end Trial Balance of Dido Ltd includes the ledger balances stated below. Dido had acquired a machine for £60,000 on 1 March 2010 and on 1 May 2010 sold for £14,000 a vehicle acquired on 1 April 2007 for £30,000. Machinery and vehicles are depreciated at 10% and 20% per annum respectively using the straight-line method.

Required: Prepare a statement of movement of non-current assets for the year ended 31 December 2010.

Notes:

1. Depreciation has been written off only until 31 December 2009.

2. The Machinery account balance, as at 31 December 2010, would include £60,000, the cost of machinery acquired ten months earlier.

3. The Motor vehicle account balance, on the other hand, will still include the cost of the vehicle sold eight months earlier because Dido Ltd is yet to account for the disposal by removing the cost of that vehicle to a Disposal account.

Transcribed Image Text:

Trial Balance as at 31 December 2010 Machinery at cost Motor vehicles at cost Accumulated depreciation to 31 December 2009: Machinery Motor vehicles Disposal of motor vehicle (proceeds) £'000 £'000 750 180 II 240 112 14