The financial year end of Hodgson (Builders Merchants) Ltd is 31 December. The company’s policy is to depreciate its motor vans at 20 per cent per annum, using the straight line method, and to calculate a full year’s depreciation on the assets in existence at the end of the financial year, regardless of when they were purchased or sold. The company’s vans were purchased and sold as follows:

£

1 January 19-9 Purchased AB 101T 2,500 1 July 20-0 Purchased CD 202 V 3,000 31 March 20-1 Purchased EE 303W 2,000 31 March 20-1 Sold AB 101T 1,000 1 AprU 20-2 Purchased GH 404 X 3,500 31 August 20-2 Sold CD 202 V 2,000

(a) You are required to draw up for the years 19-9, 20-0, 20-1 and 20-2:

(i) Motor van account.

(ii) Provision for depreciation of motor vans account.

(iii) Disposal of motor vans account.

(b) Extracts of the profit and loss accounts.

(c) Extracts of the balance sheets.