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>> The following information relate to the non-current assets of Members Company Itd Oo la January 2014 Members Company Ltd. purchased two machines at a
>> The following information relate to the non-current assets of Members Company Itd Oo la January 2014 Members Company Ltd. purchased two machines at a cost price of GHC150,000 each paying by cheque On lut July 2018 Member Company id purchased machinery at a cost price of One120,000, on credit from BD Machinery Ltd w on 30th June 2020, one of the machines purchased in January was sold for GH440,600 The disposal receipt was paid into the bank account i) Another machine was purchased for GH180,000 on 19 October, 2020 10 replace the disposal in June, 2020 ) Machinery is depreciated at 20% per annum using the straight-line method, the rate being charged for each proportion of the year the machinery is owned No allowance is made for any residual value. Required: Prepare the following ledger accounts of Members Company Ltd for the year ended Mist December (2018-2021): 1) Machinery it) Accumulated Depreciation of Machinery iii) Disposal of Motor Vehicles (10 marks) b) State and briefly explain any four (4) causes of depreciation charge per year. (6 marks) Total: 16 marks)
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