The property, plant and equipment balances of Matatizo Ltd. comprised the following as at 1 January 2013: The company uses the straight line method of depreciation on...

      

The property, plant and equipment balances of Matatizo Ltd. comprised the following as at 1
January 2013:


The company uses the straight line method of depreciation on assets as follows:
• 10% per annum for plant and machinery.
• 20% per annum for motor vehicles.
Additional information:
1. It is the company's policy to make a depreciation charge proportionate to the period of usage of the
asset.
2. An item of machinery bought on 1 July 2009 for Sh.10,080.000 was sold on 1 April 2013
at Sh.6,000,000.
3. From the year ended 31 December 2013, the management of the company decided to charge
depreciation on buildings at a rate of 2.5% per annum. The buildings were all completed on 1 July
2009.
4. On 1 January 2013, a vehicle purchased on 1 May 2010 for Sh.12,600,000 was traded in at a value
of Sh.7,320,000 in part exchange for a new vehicle costing Sh.18,000,000.
5. Included in machinery is an old machine which originally cost Sh.13, 500,000 and which was
already fully depreciated and not expected to yield any material amount on either use or resale.
6. On 30 June 2013, a machine costing Sh.13, 500,000 was purchased from a vendor who had used it
for three years. The vendor had bought the machine at Sh.18,000,000. Another machine costing
Sh.10,500,000 was purchased on 1 August 2013.
Required:
A schedule showing the movement of property, plant and equipment for the year ended 31 December
2013.

  

Answers

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Kavungya answered the question on May 16, 2019 at 06:16

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