On 1st Feb 2016 when he started business, he purchased a distribution van for Ghc20,000 cash from Tagoe & Sons Ltd. He again purchased another van for Ghc30,000 on credit from Japan Motors on 1st May, 2017. On June 30th, 2018 due to his expansion decision to the Madina Market he purchased a brand new van from Mechanical Lloyd for Ghc45,000 cash. On the 12th November, 2018 Mr. Asante exchanged the first van he acquired three years ago for a new van costing GHc 55,000 from Japan motors and paid an additional cash of GHc 50,000. Mr. Asante depreciates his vehicles at 40% per annum using the reducing balance method. It is the policy of the organization to charge a full year depreciation in the year of purchase but none in the year of disposal. Assuming 31st January as its year end show for each of the next three years. Prepare Motor Van account Accumulated depreciation account Disposal of Motor Van account Statement of profit and loss extract Statement of financial position extract
ASSIGNMENT
Here are the details of Mr. Asante’s trucks for distribution of goods:
On 1st Feb 2016 when he started business, he purchased a distribution van for Ghc20,000 cash from Tagoe & Sons Ltd.
He again purchased another van for Ghc30,000 on credit from Japan Motors on 1st May, 2017.
On June 30th, 2018 due to his expansion decision to the Madina Market he purchased a brand new van from Mechanical Lloyd for Ghc45,000 cash.
On the 12th November, 2018 Mr. Asante exchanged the first van he acquired three years ago for a new van costing GHc 55,000 from Japan motors and paid an additional cash of GHc 50,000.
Mr. Asante depreciates his vehicles at 40% per annum using the
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Motor Van account
Disposal of Motor Van account
Statement of
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