ABC limited account of motor vehicles as at 1/1/03 was Ksh. 5,000,000 while the accumulated depreciation as at that date was Ksh. 2,000,000. During the year the following transaction took place.
i. A motor vehicle bought on 1/1/01 at sh. 1,000,000 was exchanged with a new one cost sh. 1,500,000. The company paid sh. 800,000 in the exchange. The exchange took place on 30/6/03
ii. On 1/4/03 a new motor vehicle was bought at sh. 1,000,000
iii. On 31/7/03 a motor vehicle bought on 1/8/00 at cost sh. 800,000 was sold at 300,000.
iv. On 31/8/03 a 2nd hand motor vehicle was bought from XYZ limited at sh. 700,000. XYZ limited had bought the motor vehicle on 31/6/01 at 1,000,000. It is the company's policy to charge depreciation on motor vehicle at 20% on cost with a full year charge in the year of acquisition and no charge in the year of disposal.
Required:
1) Motor vehicle a/c 2) Depreciation a/c 3) Accumulated depreciation a/c 4) Disposal a/c