Reference no: EM132740236

Rehman ltd had among others the following balances in the book at 1st january the following information relate to the non -current assets for the financial year ended 31st december 2019

(a) On 1st july 2019 rehman ltd machinery at a cost price of rs 75000 paying by cheque.
(b) On 1st december 2019 Rehman ltd purchased machinery at a cost price of Rs 27600 on credit from Sk Machinery ltd.
(c) No disposal of machinery took place during the year ended 31st december 2019.
(d) Machinery is depreciated at 20% per annum using the straight line method, the rate being charged for each proportion of the year the machinery is owned. No allowance is made for any residual value. All machinery held at 31st december 2019 had been purchased within the previous four years.
(e) On 30th june 2019 motor vehicles which orignally cost Rs 40000 and with a net book value of Rs 16000 at the date of sale, were sold at a profit of Rs 600. The disposal receipt was paid into the bank account
(f) No purchases of motor vehicles took place during the year ended 31st december 2019.
(g) Motor vehicles are depreciated at 25% per annum using the straight line
method the rate being charged for each proportion of the year the motor vehicles are owned. No allowance is made for any residual value. All motor vehicles held at 31st december 2019 had been purchased within the previous three years.

Required:

Problem 1: prepare the following ledger accounts of Rehman ltd for the year ended 31st december 2019, where appropriate showing the balance carried down to the next financial year. Dates are not required.

(a) Machinery
(b) Accumulated Depreciation of Machinery
(c) Motor vehicles
(d) Accumulated Depreciation of Motor Vehicles.
(e) Disposal of Motor Vehicles