QUESTION TWOJ. Mwakisha, a contractor, started business on 1 January 2006. Purchases and disposals ofmachines over the subsequent three years were as follows:MachineCost(Shs.)5,000,0002,500,0007,000,000Date ofDate ofDisposalproceeds (Shs.)PurchaseDisposal1 January 2006I January 20061 January 2008The machines are depreciated on straight line basis using a rate of 20% per annumMAI---MB 21 January 2008900,000МС 3------Required:Write up the following accounts as they would appear in J. Mwakisha's books for theyears 2006, 2007 and 2008Machines at cost account:I.I.Provision for depreciation on machine account;Disposal of machines account.Using the information given at the beginning of this question, show a computation ofthe depreciation for the year 2006, 2007 and 2008: based on the rate of depreciationof 20% on reducing balance basis. (Individual accounts are not required)III.IV.V.

The following calculations are done for J.Mwakisha.

J. Mwakisha, a contractor, started business on 1 January 2006. Purchases and disposals of machines over the subsequent three years were as follows: Date of Purchase Cost (Shs.) 5,000,000 2,500,000 7,000,000 Machine Date of Disposal proceeds (Shs.) Disposal 1 January 2006 I January 2006 1 January 2008 The machines are depreciated on straight line basis using a rate of 20% per annum MAI --- --- MB 2 1 January 2008 900,000 МС 3 --- --- Required: I. Write up the following accounts as they would appear in J. Mwakisha's books for the years 2006, 2007 and 2008 Machines at cost account: II. Provision for depreciation on machine account; IV. III. Disposal of machines account. Using the information given at the beginning of this question, show a computation of the depreciation for the year 2006, 2007 and 2008: based on the rate of depreciation of 20% on reducing balance basis. (Individual accounts are not required) V.

J. Mwakisha, a contractor, started business on 1 January 2006. Purchases and disposals of machines over the subsequent three years were as follows: Date of Purchase Cost (Shs.) 5,000,000 2,500,000 7,000,000 Machine Date of Disposal proceeds (Shs.) Disposal 1 January 2006 I January 2006 1 January 2008 The machines are depreciated on straight line basis using a rate of 20% per annum MAI --- --- MB 2 1 January 2008 900,000 МС 3 --- --- Required: I. Write up the following accounts as they would appear in J. Mwakisha's books for the years 2006, 2007 and 2008 Machines at cost account: II. Provision for depreciation on machine account; IV. III. Disposal of machines account. Using the information given at the beginning of this question, show a computation of the depreciation for the year 2006, 2007 and 2008: based on the rate of depreciation of 20% on reducing balance basis. (Individual accounts are not required) V.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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