Question
Speed man Kenya acquired two motor vehicles namely KBA 455X and KBW 841U on 1 st January 2016 and July 1 st 2017 at a
Speed man Kenya acquired two motor vehicles namely KBA 455X and KBW 841U on 1st January 2016 and July 1st 2017 at a cost of Kshs 2,300,000 and Ksh 2,800,000 respectively. The company policy is to depreciate at 10% per annum. The deprecation is from the date of purchase. The company closed the books on 31st December 2018. KBA 455X was sold on 30th December 2018 for Ksh 1,700,000 deprecation is charged on reducing balance method.
You are required to prepare the following accounts for the year 2016, 2017, 2018
Extract of profit and loss account (Income Statement) (3 Marks)
Provision for depreciation account (9 Marks)
Motor vehicle account (6 Marks)
Disposal Account (6 Marks)
Extract of statement of financial position (balance Sheet) (6 Marks)
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