I Normal 11 No Space Head
Paragraph
Styles
The following is summarized tangible non-current asset ledger of Davlight Ltd as at 1/7/2015
Original cost Acc. Depreciation
Ksh million Ksh million
250
300
15
Free hold Land
Building
Plant & Equipment
Vehicles
Furniture & Fittings
875.4
3382
211
125
32
The depreciation policy is;
Building
5° on cost or revaluation
Plant & Equipment
10. on cost
Vehicles
20% on NBV
Furniture & Fittings
12.5% in cost
A full year charge is made in the year of acquisition and non in the year of disposal
The following transaction took place in the year to 30x1 June 2014
Freehold land and building were professionally revalued on 12 July 2013 at KSh 375
million and Ksh 500 million respectively.
A vehicle bought in on 12 June 2011 for Ksh 85 million was traded in at a value of Ksh
4 million in part exchange for a new vehicle costing Ksh 1-10 million
Included with the furniture and fittings is an item which originally cost Ksh 15 million
and which is already fully depreciated and will be disposed off at KSh 500,000
Required
a) Journal entries to record the disposal of motor vehicle and furniture (8 marks)
b) Motor vehicle disposal a/c
(3 marks)
c) Revaluation a/c
d) Furniture and fitting a/c
(3 marles
e) Depreciation expense a/c
I
(3 marks
(3 marks)