Question 4 (37 marks) 4.1 Gold construction cc depreciates its plant at a rate of 25% per annum, straight-line method, for each month of ownership. The following additions were made and the financial year ends 31 December. 01 January 2014 Bought plant costing N$2 600 by cheque 01 October 2014 Bought plant costing N$2 100 by cheque 01 September 2016 Bought plant costing N$2 800 cash 31 August 2017 Sold for the sum of N$810 which had been bought for N$2 600 on 01 January 2014. You are required to draw up the following: 4.1.1 Plant account for each of the years 2014; 2015; 2016 and 2017. (10 marks)

Page 15 of 15 4.1.2 The provision for depreciation account for each of the years 2014; 2015; 2016 and 2017 (14 marks) 4.1.3 Plant disposal account for the year. (4 marks) 4.2 As a manager of a business, you have to choose a method for stock valuation. The business you work for uses the perpetual inventory stock system. On 31 May 2016, there were 350 units at N$18 per unit in stock. The inventory movement for June are shown below. Dates Received Issued Unit purchase price June 1 300 20 12 800 25 24 900 30 150 You are required to: 4.2.1 Calculate the value of closing stock using the LIFO (Last in first out) method of stock valuation (9 Marks)