Question
)Thenon-currentassetsofJumbolimitedasat1stMay2018wasasfollows; Costsh.000 AccumulatedDep.Sh.000 Land 440,000 - PlantandEquipment 700,320 270,560 MotorVehicles 517,600 168,800 Fixturesandfittings 100,000 25,600 AdditionalInformation a)Thecompanyusesastraightlinemethodofdepreciationatthefollowingrates; PlantandEquipment 10% Motorvehicles 20% Fixturesandfittings 12.5% b)Itisthepolicyofthecompanytoprovideforafullyeardepreciationintheyearof purchaseofanassetandnonintheyearofdisposal.
)Thenon-currentassetsofJumbolimitedasat1stMay2018wasasfollows;
Costsh.000
AccumulatedDep.Sh.000
Land
440,000
-
PlantandEquipment
700,320
270,560
MotorVehicles
517,600
168,800
Fixturesandfittings
100,000
25,600
AdditionalInformation
a)Thecompanyusesastraightlinemethodofdepreciationatthefollowingrates;
PlantandEquipment
10%
Motorvehicles
20%
Fixturesandfittings
12.5%
b)Itisthepolicyofthecompanytoprovideforafullyeardepreciationintheyearof
purchaseofanassetandnonintheyearofdisposal.
c)Landwasrevaluedatsh.780,000,000duringtheyear.
d)Amotorvehicleboughton1stJan2016forsh.680,000wastradedinon1stJuly2018at
avalueofsh.352,000inpartexchangeforanewmotorvehiclecostingsh.1,120.000.
e)Fixturesandfittingsincludeanitemwhichisalreadyfullydepreciatedandnolongerin
use,itscostwassh.200,000
f)On1stJanuary2019thecompanypurchasedplantandequipmentatacostofsh.
12,000,000.
i.
Provisionfordepreciationonplantandequipmentaccount
(2Marks)
ii.
Provisionfordepreciationonmotorvehiclesaccount
(2Marks)
iii.
Provisionfordepreciationonfixturesandfittingsaccount.
(2Marks)
iv.
Noncurrentassetmovementschedulefortheyearended30thApril2019(12Marks)
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