From the following information relating to the fixed assets of a business prepare the following accounts as they should appear in the ledger:

(a) plant and machinery;

(b) — motor vehicles;

(c) plant and machinery provision for depreciation;

(d) motor vehicles provision for depreciation;

(e) asset realization.

The plant and machinery was acquired on 1 January 19X6, at a cost of £7,500, and the motor vehicles were acquired on 1 July 19X8, at a cost of £3,500.

It has been the practice of the business to depreciate assets using the straight-line method and they estimate the life of the plant to be ten years and that of the motor vehicles to be five years.

The accounts of the business are made up to 31 December in each year and it is usual to calculate depreciation for a full year on the assets in the possession of the business at balance sheet date.
During the year to 31 December 20X0, a new machine costing £1,000 was acquired and a machine bought on 1 January 19X6 for £500 was sold for £325; and a car costing £750 on 1 July 19X8 was sold for £400.