Q2.The following information relates to GbiliGbili Ltd:a) On 1* January, 2021 balances brought forward in respect of non-current assets were:Plant and machinery at costMotor vehicles at costProvision for depreciation:Plant and machineryMotor vehicles1GHC900,000780,00050,00030,000b) During the six months period ending 30 June 2021, the following additional non-currentassets were acquired by cheque:i. On 31 March 2021 two cargo GHC20,000 each and a plant for GHC50,000ii.On 1* April 2021, one saloon car at GHC10,000 and four machines GHC12,000each.On 30ª June, 2021 two machines purchased on 1 January, 2018 at GHC9,000 were sold forGHC4,500 and GHC5,500. On the same date, one saloon car purchased on 1 July, 2018 forGHC15,000 was auctioned for GHC11,000. It is the policy of the business to depreciate motorvehicles and plant and machinery at 10% and 5% per annum respectively on straight line methodand on one month ownership basis.You are required to write up the following accounts to 30 June, 2021:i. Plant and machinery and Motor vehicles.ii. Provision for depreciation of plant and machinery and motor vehiclesiii. Disposal of plant and machinery and motor vehicles.

Ledger accounts are a fundamental component of double-entry bookkeeping, which is a system used by…

You are required to write up the following accounts to 30" June, 2021: i. Plant and machinery and Motor vehicles. ii. Provision for depreciation of plant and machinery and motor vehicles iii. Disposal of plant and machinery and motor vehicles.

You are required to write up the following accounts to 30" June, 2021: i. Plant and machinery and Motor vehicles. ii. Provision for depreciation of plant and machinery and motor vehicles iii. Disposal of plant and machinery and motor vehicles.

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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