Distance Limited owned three lorries at 1 April 2019:

Depreciation is charged annually at 20 per cent of cost on all vehicles in use at the end of the year.
During the year ended 31 March 2020, the following transactions occurred:
(i) 1 June 2019: 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 2019: Lorry D was purchased for £32,800.
(iii) 21 August 2019: Lorry A was sold for £7,000.
(iv) 30 October 2019: Lorry E was purchased for £39,000.
(v) 6 March 2020: 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 2020 and bring down the balances at 1 April.

Transcribed Image Text:

Lorry A: purchased Lorry B: purchased Lorry C: purchased on 1 January 2019 for 48,800 on 21 May 2015 for 31,200 on 20 June 2017 for 19,600