At 31^st December 2015, the SFOP of Horn ltd showed the following

Cost $

Acc. Depn $

PPE

135,620

81,374

Furniture

2,860

1,490

The following acquisitions were made during the financial year ended 31 December 2016:

PPE

47,800

The following disposals also took place during the financial year ended 31 December 2016:

PPE cost $36000, Acc depn $28,224 for $5,700

The company uses reducing balance method of depreciation at 40% calculated in full on assets in use at the end of each financial year irrespective of the date of purchase.

Show the relevant ledger a\cs and extract of F|S to account for the above transactions as at 31Dec 2016

Activity 7.