QUESTION ONE

The financial year of Company X starts from 1st. May every year. On 17th July 2022, X. ltd acquired the following non-current assets:

Note: Land worth sh.990,000 (being part of 1,480,000) was acquired in cash, no land is on finance lease.

The company's policy is to charge depreciation at the following rates:

	Cash/On Credit	On Finance lease	Hire Purchase
Plant & Machinery	250,000	460,000	900,000
Land & Buildings	1,480,000	720,000	-
Furniture	860,000	950,000	230,000
Motor vehicles	960,000	870,000	125,000
Other Fixtures & Fittings	654,000	620,000	860,000

	Rate
Land	Nil
Buildings	10 % on cost
Plant and machinery	7% on reducing balance method.
Motor vehicles, Fixtures & Fittings & Furniture	12% on reducing balance method.

A proportionate charge is made in the year of purchase, sale, or revaluation of an asset.

The following transactions took place:

1. On 14th December 2022, the company decided to revalue its Land & buildings up to sh.3,800,000. (Land Sh.1,500,000).
2. On 20^th March 2023, a new plant was hire purchased for Sh.210,000.
3. On 1^st April 2023, a motor vehicle that was acquired on credit from Modern Suppliers ltd for Sh.228,000 was disposed for sh.194,000.
4. On 13^th January 2023 Furniture worth sh. 115,000 was hire purchased from Sammy furniture Ltd.

Required

1. Account for these assets as per IAS 16 for this financial year.
2. Prepare the PPE schedule and show the amount that will appear in the balance sheet.