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A Depreciation Questions

Mohan, a trader, depreciates his motor vehicles at 20% per annum on cost, with his financial year ending on December 31. As of January 1, 2014, he has two motor vehicles with specified costs and accumulated depreciation, and he purchased a third vehicle on July 1, 2014. The document requires the preparation of accounts for the years ending December 31, 2014, and December 31, 2015, including balances carried forward.

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6 views2 pages

A Depreciation Questions

Mohan, a trader, depreciates his motor vehicles at 20% per annum on cost, with his financial year ending on December 31. As of January 1, 2014, he has two motor vehicles with specified costs and accumulated depreciation, and he purchased a third vehicle on July 1, 2014. The document requires the preparation of accounts for the years ending December 31, 2014, and December 31, 2015, including balances carried forward.

Uploaded by

mnollitah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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14

5 Mohan is a trader. His financial


year ends on 31 December.

Mohan depreciates his motor vehicles at 20% per annum on cost, calculated
purchase. from the date of

The following information was available on 1 January 2014.

Cost
Accumulated
depreciation
Motor vehicle A
12000 7200
Motor vehicle B 13000 3900
On 1 July 2014 Motor vehicle C was purchased for $15000,by cheque.
REQUIRED

(a) Prepare the following


accounts for each of the two years ended 31
31 December 2015. December 2014 and

Balance the accounts and bring


down the balances on 1 January 2015 and 1 January 2016.
Mohan
Motor vehicles account

Date Details
Date Details

2014
Jan 1
Balance b/d
A- 12000
B-13000 25000

.....,...
Provision for depreciation of motor vehicles account

Date Details Date Details $

2014
Jan 1
Balance b/d
A- 7200
B-3900 11 100

[11]

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