Ahmed started a taxi business on 1 January 2009. The following information relates to the vehicles account in the non-current assets:

1 January 2009 Purchased Vehicle A by cheque for 12 000

1 April 2010 Purchased Vehicle B on credit from Mohameds Garages for 16 000

1 July 2010 Purchased Vehicle C by cheque for 20 000

1 July 2011 Purchased Vehicle D for 18 000 giving in part exchange Vehicle B at an agreed valuation of 10 800. The balance of the purchase price was paid by cheque.

Ahmed has the following depreciation policy:

Vehicles are depreciated at the rate of 20% per annum using the straight line method

Depreciation is charged on vehicles purchased or sold during a year in proportion to the months of ownership.

Required:

(a) Prepare a table showing the depreciation charged on each of the vehicles A, B, C and D, in each of the years 2009, 2010 and 2011. (8 marks)

(b) Prepare the following for the year ended 31 December 2011:

(i) Vehicle account

(ii) Vehicle Provision for depreciation account

(iii) Vehicle disposal account.