Answer ALL questions from this section.

A business has a building valued at $$260,000,$ a motor vehicle valued at

$$27,000,$ fixtures and fittings worth $$80,000,$ and cash in the bank of $$28,000.$

The business also has trade payables of $$20,000$ and a loan of $$95,000.$ How

much capital does the business have?

$(4$ marks$)$

Jaja Ltd bought office equipment on January $1,2023$ at a cost of $$80,000.$ At $31$

December, $2023,$ the accumulated depreciation was $$24,000$ and the asset was

expected to have a salvage value of $$20,000.$ On January $1,2024$ the office

equipment was sold at a price of $$18,000.$ Calculate the loss or gain on disposal

of the asset.

$(4$ marks$)$

Kakra Ltd$\text{'}$s total non$-$current asset net book value is $$334,920$ at the beginning

of the year. During the year, non$-$current assets costing $$90,000$ was sold for

$$58,000,$ making a loss on disposal of $$4,000.$ Calculate the balance on the non$-$

current asset account at the end of the year.

$(4$ marks$)$

A company buys a new machine at a cost of $$100,000$ in $208.$ It expects the

asset to have a salvage value of $$32,000$ at the end of its useful life. The

company expects to use the asset for $4$ years. The company uses the reducing

balance method of depreciation at a rate of $25\%.$ Calculate depreciation charge

for the $209.$

$(4$ marks$)$