The following information has been extracted from the books of account of XYZ Limited at 1 January 2022.

$

Motor vehicles at cost 124 000

Motor vehicles provision for depreciation 54 250

The following information is also available.

1 All the companys motor vehicles had been purchased on 1 January 2020.

2 On 1 July 2022, a new motor vehicle was purchased for $48 000. The cost was settled by a cheque payment of $28 000, the balance by the part exchange of an old motor vehicle.

The vehicle that was part-exchanged had cost $36 000.

3 The company policy is to depreciate motor vehicles at 25% per annum using the reducing balance method.

A full years depreciation is charged in the year of purchase, but none in the year of sale.

REQUIRED

(a) Prepare the following ledger accounts for the year ended 31 December 2022: [13]

Motor vehicle account at cost

Provision for depreciation on motor vehicle account

Disposal account