The cost of a new delivery van acquired by a firm on I March 1984 was £5200 , payable £1200 in cash, £400 on the trade-in of an old van , and £3600 by 12 monthly instalments beginning on I April 1984. The old van had originally cost

£2400 but had a written-down book value at the date of disposal of £600.

(a) Record in journal entry form the transactions dealing with the disposal of the old vehicle and acquisition of the new van .

(b) Given that the new van is depreciated on the sum-of-the-years digits basis over four years, assuming a disposal value of £500 at the end of that time, prepare the ledger accounts relating to the acquisition of the van and the balances outstanding at the end of the accounting year to 31 December 1984.