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(i) Motor vehicles at cost 230,000 was purchased on 1 April 2017. Depreciation is provided at 15% p.a. on the straight-line basis. Depreciation is to

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(i) Motor vehicles at cost 230,000 was purchased on 1 April 2017. Depreciation is provided at 15% p.a. on the straight-line basis. Depreciation is to be calculated on assets in existence at the end of each year, giving a full year's depreciation even though the asset was bought part of the way through the year. On 1 February 2019, one of the motor vehicles costing 57,000 was sold at a value of 36,000. REQUIRED: Prepare the following accounts for the year ended 31 March 2018 and 2019: a) Motor vehicles; b) Accumulated depreciation; and c) Disposal of motor vehicles account [14] (ii) Provide an example where it would be more appropriate to use the straight line method and another example where it would be more appropriate to use the reducing balance method. [6]

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