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