The following information relates to Kpakpakpa Ltd: On 1st January, 2015 balances brought forward in respect of non-current assets were: GH₵ Plant and machinery at cost 900,000 Motor vehicles at cost 780,000 Provision for depreciation: Plant and machinery 50,000 Motor vehicles 30,000 During the six months period ending 30th June 2015, the following additional non-current assets were acquired by cheque: On 31st March 2015 two cargo GH₵20,000 each and a plant for GH₵50,000 On 1st April 2015, one saloon car at GH₵10,000 and four machines GH₵12,000 each. On 30th June, 2015 two machines purchased on 1st January, 2012 at GH₵9,000 were sold for GH₵4,500 and GH₵5,500. On the same date, one saloon car purchased on 1st July, 2012 for GH₵15,000 was auctioned for GH₵11,000. It is the policy of the business to depreciate motor vehicles and plant and machinery at 10% and 5% per annum respectively on straight line method and on one month ownership basis. You are required to write up the following accounts to 30th June, 2015: Plant and machinery and Motor vehicles. Provision for depreciation of plant and machinery and motor vehicles Disposal of plant and machinery and motor vehicles.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information relates to Kpakpakpa Ltd:
On 1st January, 2015 balances brought forward in respect of non-current assets were:

GH₵

Plant and machinery at cost
900,000

Motor vehicles at cost
780,000

Provision for depreciation:


Plant and machinery
50,000

Motor vehicles
30,000


During the six months period ending 30th June 2015, the following additional non-current assets were acquired by cheque:
On 31st March 2015 two cargo GH₵20,000 each and a plant for GH₵50,000
On 1st April 2015, one saloon car at GH₵10,000 and four machines GH₵12,000 each.
On 30th June, 2015 two machines purchased on 1st January, 2012 at GH₵9,000 were sold for GH₵4,500 and GH₵5,500. On the same date, one saloon car purchased on 1st July, 2012 for GH₵15,000 was auctioned for GH₵11,000. It is the policy of the business to depreciate motor vehicles and plant and machinery at 10% and 5% per annum respectively on straight line method and on one month ownership basis.
You are required to write up the following accounts to 30th June, 2015:
Plant and machinery and Motor vehicles.
Provision for depreciation of plant and machinery and motor vehicles
Disposal of plant and machinery and motor vehicles.

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