Question 2 The following information relating to the non-current assets of sole trader B. Martin as at 1 January 2021 is

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Question 2
The following information relating to
the non-current assets of sole trader B. Martin as at 1 January
2021 is available:
N$
Premises at cost 1 January 2021
540,000
Accumulated depreciation premises 1
January 2021
113,400
Delivery vans: Delivery van A at cost
(purchased 1 July 2016)
31,500
Delivery van B at cost (purchased 1
April 2018)
26,500
Delivery van C at cost (purchased 1
April 2019)
40,000
During the year to 31 December 2021 the
following occurred:
Premises
Due to increased demand, B. Martin
built an extension to his premises. The following costs were
incurred:
(These repairs did not enhance the
earnings capacity of the building).
Delivery Vans
Delivery
Delivery Van
C
On 1 February 2021, delivery van C was
crashed and completely written off. The van was sold to a scrap
yard for N$ 900. The insurance company paid out N$ 20,500 in
compensation.
Delivery Van
B
On 1 September 2021, delivery van B
was traded in against a new delivery van, delivery van D. A trade
in allowance of N$12,000 was achieved on delivery van B and used in
part payment of delivery van D. The total cost of delivery van D
was N435,000 and the balance due was paid immediately by
cheque.
Delivery vans are depreciated by 20%
per annum on a straight line basis.
The depreciation policy of B. Martin
is to charge depreciation from the month of purchase to month of
sale.
You are required to prepare
the following T(ledger) accounts for the year ended 31 December
2021:
A. Premises: cost account.AND
premises: accumulated depreciation account
B. Delivery van: cost account
AND Delivery van: accumulated depreciation account
C. Disposal account delivery
van C AND Disposal account delivery van B.