6 2 A- Walters, a trader, uses vans for making deliveries. The following is an extract from his balance sheet as at 31 December 20X0:

£

23,040 5,760 17,280 On 7 March 20X1 Walters purchased, for cash, an additional van for £10,560. On 5 July 20X2 he sold a van for £4,320 cash. It had been purchased in 20X0 for £9,600.
On 10 July 20X2 he purchased a new van. Details of the amount paid are as follows:
£
Purchase of van 10,080 Delivery 96 Accessories 288 Petrol 48 Road tax 120 10,632 Walters provides for depreciation on a straight-line basis over four years, assuming zero residual value; a full year’s depreciation is provided in the year of purchase, nil in the year of sale.
Required:

(a) the necessary ledger accounts to reflect the above;

(b) the figures to be shown in the balance sheets at 31 December 20X1 and 20X2 and in the profit and loss accounts for the years ended on those dates.