Reference no: EM13510346
The fixed asset accounts of Kuni ltd. as at 31st December 2003 were as follows:
|
Cost
|
Accumulated
depreciation
|
Net book
Value
|
|
Sh.
|
Sh.
|
Sh.
|
|
Freehold land and buildings
|
1,550,000
|
-
|
1,550,000
|
|
Plant and machinery
|
1,275,400
|
838,500
|
436,900
|
|
Motor Vehicles
|
897,000
|
516,000
|
381,000
|
|
Furniture
|
725,000
|
332,000
|
3 93,000
|
The company uses straight-line method of depreciation to depreciate fixed assets at following rates:
i) 10% per annum on plant and machinery
ii) 20% per annum on vehicles, and
iii) 12 % per annum on furniture
It is the company's policy to make a full year's charge in the year of purchase and no deprecation in the year of disposal. The following additional information is relevant to the calculation of depreciation for the year to 30th December 2004
i. Freehold land and buildings were re-valued by Mwamuko registered valuers at a surplus of Sh.1, 200,000.
ii. An item of Machinery bought on January 2000 for Sh350, 000 is now recognized to have a useful life of at least 20 years.
iii. A vehicle bought on 1st July 2000 for Sh.450, 000 was traded in at a value of Sh.240, 000 in part exchange for a new vehicle costing 600,000.
iv. Included with the furniture is an item which originally cost Sh.215, 000 and which is already fully depreciated and not expected to realise much from use or disposal.
v. An item of plant bought in 2001 at a cost of 500,000 is disposed in the year at 350,000.
Required:
a) Prepare a schedule of fixed assets movements and balances for the year to 31St December 2004.
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