1. The company incurred the following costs in acquiring new equipment

Sh.'000

Invoice price of equipment' 140,000

Freight 10,500

Installation 10,500

Insurance in transit 14,000

175,000

2. Property, plant and equipment disposed of during the year were as follows:

In addition, a new truck was acquired by trading in an old truck at an agreed value of Sh.10.5 million and making an additional cash payment of Sh.15 million. The old truck had cost Sh.15 million in July 2000.

3. The directors recommended a reclassification of some items of equipment to furniture. These items had cost Sh.15 million and had accumulated depreciation of Sh.3 million.

4. The company's policy is to charge depreciation on a straight line basis at the following rates:

Equipment 20% per annum

Furniture 12 % per annum

Motor vehicles 30 % per annum

5. A full year's depreciation was charged in the year of acquisition but none in the year of disposal.

Required:

1. Explain two other methods of charging depreciation that Kimwa construction Ltd could have used.
2. A property, plant and equipment disposal account for the year ended 30 June 2004.
3. A property, plant and equipment movement Schedule for the year ended 30 June 2004