REVTEW OUESTION Depreciation at 1s June 2004 Old delivery van Cost Depreciation at 1tt June 2004 Loan account at 9% (repayable in five years) 2400 2000 You ascertain the following information: 1. Closing stock has been valued for accounts purposes at K8 490000. 2. The motor van was sold on 31 st August 2004 and traded in against the cost of a new van. The trade-in price was KI million and the cost of the new van was K3200000. 3. Depreciation on the straight-line basis is to be provide at the following annual rates: Motor vans Furniture and equipment 25% 10% 4. 5% of the closing debtors' total is estimated to be doubtful. 5. An accrual of K372000 is required in respect of light and heat. 6. A quarter's rent to 30th June 2005 amounting to K900000 was paid on 2nd April 2005. Rates for the year to 31 March 2006 amounting to K1 680000 were paid on 16th April 2005. You are required to: Prepare the trading and profit and loss account for the year ended 31It May 2005 and the balance sheet as at that date