The following balances were recorded in the books of Speedy Deliveries on 1 May 2019. Non-current assets (cost) Motor vehicle Computer equipment Provisions for depreciation . Motor vehicles Computer equipment 16 000 20 000 The motor vehicle had been purchased on 1 May 2017. To be calculated 5 000 Depreciation policy (1) The depreciation policy of Speedy Deliveries had been to charge depreciation on all non-current assets owned at the end of each year at the rate of: motor vehicles 15% using the straight line method computer equipment 25% using the reducing balance method. (2) On 30 April 2020 Speedy Deliveries reviewed its depreciation policy and decided to charge depreciation on the motor vehicle at the rate of 25% using the reducing balance method. This would be backdated to the date of purchase of the motor vehicle with an adjustment to be made in the Motor Vehicle Provision for Depreciation Account. Required (a) Calculate the adjustment to be made for each of the years ended 30 April 2018 and 30 April 2019 to introduce the new depreciation policy. (3)

The following balances were recorded in the books of Speedy Deliveries on 1 May 2019. The motor vehicle had been purchased on 1 May 2017. Depreciation policy (1) The depreciation policy of Speedy Deliveries had been to charge depreciation on all non-current assets owned at the end of each year at the rate of: - motor vehicles 15% using the straight line method - computer equipment 25% using the reducing balance method. (2) On 30 April 2020 Speedy Deliveries reviewed its depreciation policy and decided to charge depreciation on the motor vehicle at the rate of 25% using the reducing balance method This would be backdated to the date of purchase of the motor vehicle with an adjustment to be made in the Motor Vehicle Provision for Depreciation Account. Required (a) Calculate the adjustment to be made for each of the years ended 30 April 2018 and 30April2019 to introduce the new depreciation policy. (3) Purchase and sales of computer equipment for the year ended 30 April 2020 1 September 2019 . Sold computer equipment, costing 3600 and with a 1 carrying value, for a payment by cheque of 850 10 September 2019 . Purchased computer equipment, 6000, on credit from Bell Computers. Required (b) State two causes of depreciation for computer equipment. (c) Explain the following accounting concepts as they relate to the depreciation of non-current assets: - going concern - consistency. (d) Calculate the depreciation to be charged for the year ended 30 April 2020 for the: (i) motor vehicle (ii) computer equipment. (e) Prepare for the year ending 30 April 2020 the following ledger accounts: (i) Computer Equipment Account (ii) Disposal Account