A company starts in business on 1 January 19X1. You are to write up the motor vans account and the provision for depreciation account for the year ended 31 December 19X1 from the information given below. Depreciation is at the rate of 20 per cent per annum, using the basis of one month’s ownership needs one month’s depreciation.

19X1 Bought two motor vans for £1,200 each on 1 January Bought one motor van for £1,400 on 1 July