(a) Briefly describe the purpose of depreciation in formulating accounting statements, and illustrate two widely used methods of calculating it, together with the circumstances in which each might be appropriate. (5 Marks) (b) A Company depreciates its plant at the rate of 25 per cent per annum straight-line method for each month of ownership.

2016 Bought plant costing K 2 600 000

on 1 JanuaryBought plant costing K 2100 000 on 1

October2018 Bought plant costing K 2 800 000

on 1 September2019 Sold plant which had been bou on 1 January 2016 forthe sum of K 2810000 on 31 August 2019. From the above details prepare for each of the years 2016,2017,2018 and 2019 (a) the plant account, (6Marks) (b)o (c) the plant disposal account