The assets account The provision for depreciation accounts. The profit and loss account extract.
Kaisa Ltd has a stream of assets and the following were extracted from its books:
1st January, 1990. Bought a motor vehicle costing ¢1,500.
4th April, 1990. Bought plant and machinery costing ¢4,700
10th October, 1992. Bought motor vehicle costing ¢2,300.
2nd December, 1992. Bought Plant and machinery costing ¢8,200
The depreciation policy of the firm is to
You are required to prepare the following accounts:
- The assets account
- The provision for depreciation accounts.
- The
profit and loss account extract.
- The
balance sheet extract.
Assuming the company uses:
- The
straight line method to depreciate the motor vehicle.
The
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Assets are the resources held by the company or business which help to run a business and generate income. There are majorly two types of assets fixed assets such as plant and machinery; and current assets such as cash, bank, and accounts receivable.
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