Question 3 a. b. Non-current assets depreciate for a variety of reasons including wear and tear. State three other reasons why assets depreciate. (3 marks) On 1 January 2011 Kamali bought three machines costing $9,000 each paying by cheque. They were expected to have a useful life of 4 years and a resale value of $1,000 each. Kamali charges depreciation on the straight line basis according the time the asset is in use in the business. On 1 July 2012 Youssef sold one machine receiving a cheque for $5,800. Prepare the following ledger accounts for each of the years ended 31 December 2011 and 31 December 2012. Bring down the balances on 1 January 2013. i. ii. iii. Machinery account Provision for depreciation of machinery account Machinery disposal account. (4 marks) (9 marks) (4 marks) (Total: 20 marks)