QUESTION ONE a) How is the Reducing balance method different from the straight linemethod of depreciation? (5 marks) b) Explain the reasons as to why any organization should account for depreciation. (5 marks) c) Mustafa and Syed went into partnership on 1I Apri 2010 . On that date they purchased equipment from AB ltd on credit for $10,000. The partners decided to provide for full year's depreciation in the year of purchase andnon in the year of disposal. It was agreed that depreciation be calculated on equipment owned as at 31r March of every year at a rate of 20% per annum, using straight line method. On 1n Oct 2012, half of the equipment was sold on credit to zeta ltd for $3500. Required; Prepare the following accounts in the ledger of Mustafa and Syed for the year ended 31nt March 2012 . i) Equipment Account (4 marks) ii) Provision for depreciation on equipment account (4 marks) iii) Disposal of equipment account (4 marks) d) Partners are proposing changing from Straight line method to reducingmethod ofdepreciation. State and explain two reasons why partners should not change to a different method of calculating depreciation. (3 marks) Total 25 marks QUESTION TWO Mel Rose is a trader who keeps a petty cash book on an imprest system, under the following analysis columns; postage, stationery, cleaning, travel and ledger account. Mel Rose's imprest amount is $300. Her transactions for the month of Jan 2016 were as follows; Kequired; a) With examples, explain the imprest system in relation to petty cash book. (4 marks) b) Enter the above transactions in Mel Rose's Petty cash book and balance it off as at 31N Jan 2016 . (15 marks) c) Explain to Mel Rosehowthe double entry is completed for the items recorded in the analysis columns of the petty cash book. (6 marks) QUESTION THREE The following details are extracts fromthe books of Mugisha a wholesaler in the town of Mbarara, Uganda, for the month of Dec 2015. Dec 1st commenced business with $16000 cash at hand and $100000 cash at bank. 2nd Bought a delivery van by cheque $15000 10th. Paid for a dvertising by cheque $4000 18th Cash sales $12000, cash purchases $9000 20th bought stationery by cheque, $2000 25th withdrew $12500 from bank for office use 31st Banked cash $6000 Required. Post the transactions into their relevant leger accounts. (7 marks)