Question 1A Explain the purpose of providing for depreciation and give details of one method of computing the annual depreciation on an asset. Question 1B Makwebo has been doing business for some years, drawing up his accounts to 31 December each year. On 1 July 2002 he bought a lorry for K4800. He determines that the useful life of the lorry is five years, with a scrap value of K600. Makwebo provides depreciation on a straight line basis on all his non-current assets. On 1 April 2004, Makwebo sold the lorry for K3600. Required: Prepare the appropriate ledger accounts and show the effect of each year's results on the financial statements. (25 marks)