Winston owns a business which has a financial year end of 31 December 2020. The table below shows the following ledger account balances of the business.

	Dr	Cr
Balance sheet accounts:
Fixtures and fittings at cost (at 31/12/2019)	150,000
Fixtures and fittings accumulated depreciation (at 31/12/2019)		60,000
Motor vehicles at cost (at 31/12/2019)	80,000
Motor vehicles accumulated depreciation (at 31/12/2019)		20,000
Receivables (at 31/12/2020)	390,000
Allowance for receivables (at 31/12/2019)		20,000

The following information is relevant:

1. Motor vehicles are depreciated at 25% per annum using the reducing balance method.
2. Depreciation on fixtures and fittings is provided at 20% per annum on the straight-line basis, assuming no residual value.
3. Winston estimates that 26,800 due from customers will be irrecoverable and must be written off.
4. The allowance for receivables is to be set at 4% of net receivables at 31 December 2020.
5. There were no additions and disposals of non-current assets during the year.

Required:

• a.Prepare the non-current assets note using the layout as shown in the table below. Show your workings.

Non-current assets	Fixtures & Fittings	Motor vehicles	Total
Cost
At 31 December 2019
Additions
Disposals
At 31 December 2020
Accumulated depreciation
At 31 December 2019
Charge for the year
Depreciation on disposal
At 31 December 2020
Carrying amount
At 31 December 2019
At 31 December 2020

• b.Calculate the increase or decrease in the allowance for irrecoverable receivables for the year ending 31 December 2020.

• c.State the figure that will be shown on the face of the balance sheet for receivables at the year-end 31 December 2020.

• d.In 100 words or less, give an argument for, and an argument against, Winstons depreciation policy in respect of fixtures and fittings.