Page 243 - Accountancy_F5
P. 243

Details                                                                      TZS
            Motor vehicles:

            Balance on 1  January 2020 at cost                                   297,000,000
                         st
            Add: Acquisition during 2020 at cost                                 107,000,000
            Less: Disposals during 2020 at cost                                  404,000,000
          FOR ONLINE READING ONLY
            Balance on 31  December 2020 at cost                                 101,000,000
                          st
            Less: Accumulated depreciation 31  December 2020                     303,000,000
                                              st
            Net Book Value (NBV)                                                  71,000,000
                                                                                 232,000,000
                      LANGUAGE EDITING
            Depreciation is charged at 20 per cent per annum over five years. A full year’s depreciation
            is charged in the year of acquisition but none in the year of disposal.

            During 2021, the following motor vehicle transactions took place:

            Acquisition              Vehicle type                                        TZS
            31  March                              Lorry                          26,500,000
              st
            30  April                              Lorry                          38,400,000
              th
            31  August                            Saloon                          11,650,000
              st
            31  December                           Lorry                          34,200,000
              st
                                                                         Cost       Proceeds
            Disposal          Vehicle type     Purchased
                                                                         TZS             TZS
            30  April         Lorry            31/01/2017          35,000,000       5,500,000
              th
            30  June          Saloon           30/06/2019           9,500,000       7,500,000
              th
            30  September     Lorry            30/12/2016          40,000,000       2,500,000
              th
            30  November      Lorry            01/01/2018          30,000,000     11,500,000
              th
            Required:
            (a)   Prepare the following for 2021:
                   (i)   Motor vehicles account,
                   (ii)  Motor vehicles accumulated depreciation account,
                   (iii)  Motor vehicles disposal account.
            (b)   Show the relevant entries in the company’s profit or loss account (extract) and
                  the statement of financial position (extract) at the end of 2021.










                                                                         Student’s Book Form Five
                                                   230



                                                                                            23/06/2024   17:36
     ACCOUNTANCY_DUMMY_23 JUNE.indd   230                                                   23/06/2024   17:36
     ACCOUNTANCY_DUMMY_23 JUNE.indd   230
   238   239   240   241   242   243   244   245   246   247   248