Prepare a non-current asset schedule clearly showing the movements in both the cost and depreciation for the categories of the assets listed.

To prepare the non-current asset schedule, we will calculate the movements in cost and accumulated depreciation for Buildings, Motor Vehicles, and Equipment. The year ends on 31 May 2010. Non-Current Asset Schedule for the year ended 31 May 2010 Step 1: Calculate Cost Movements for each asset. Buildings: Cost brought forward: K 900,000 Additions: K 0 Disposals: K 0 Closing Cost: K 900,000 + K 0 - K 0 = K 900,000 Motor Vehicles: Cost brought forward: K 700,000 Additions: K 200,000 Disposals (at cost): K 150,000 Closing Cost: K 700,000 + K 200,000 - K 150,000 = K 750,000 Equipment: Cost brought forward: K 450,000 Additions: K 140,000 Disposals (at cost): K 110,000 Closing Cost: K 450,000 + K 140,000 - K 110,000 = K 480,000 Step 2: Calculate Accumulated Depreciation on Disposals. Motor Vehicles: Cost of disposed vehicle: K 150,000 Net Book Value (NBV) of disposed vehicle: K 80,000 Accumulated depreciation on disposal: K 150,000 - K 80,000 = K 70,000 Equipment: Cost of disposed equipment: K 110,000 Net Book Value (NBV) of disposed equipment: K 50,000 Accumulated depreciation on disposal: K 110,000 - K 50,000 = K 60,000 Step 3: Calculate Depreciation for the Year. Buildings (2% per annum on cost): Depreciation = K 900,000 × 2% = K 18,000 Motor Vehicles (20% straight line): Depreciation on assets held for full year: (K 700,000 - K 150,000) × 20% = K 550,000 × 20% = K 110,000 Depreciation on additions: K 200,000 × 20% = K 40,000 Total depreciation for the year: K 110,000 + K 40,000 = K 150,000 Equipment (10% reducing balance method): Depreciation on assets held for full year: Cost of remaining assets: K 450,000 - K 110,000 = K 340,000 Accumulated depreciation on remaining assets (opening): K 100,000 (total b/f) - K 60,000 (disposed) = K 40,000 Net Book Value of remaining assets (opening): K 340,000 - K 40,000 = K 300,000 Depreciation on remaining assets: K 300,000 × 10% = K 30,000 Depreciation on additions: K 140,000 × 10% = K 14,000 Total depreciation for the year: K 30,000 + K 14,000 = K 44,000 Step 4: Calculate Accumulated Depreciation Closing Balances. Buildings: Opening Acc. Dep.: K 40,000 Depreciation on disposals: K 0 Depreciation for the year: K 18,000 Closing Acc. Dep.: K 40,000 - K 0 + K 18,000 = K 58,000 Motor Vehicles: Opening Acc. Dep.: K 120,000 Depreciation on disposals: K 70,000 Depreciation for the year: K 150,000 Closing Acc. Dep.: K 120,000 - K 70,000 + K 150,000 = K 200,000 Equipment: Opening Acc. Dep.: K 100,000 Depreciation on disposals: K 60,000 Depreciation for the year: K 44,000 Closing Acc. Dep.: K 100,000 - K 60,000 + K 44,000 = K 84,000 Step 5: Prepare the Non-Current Asset Schedule. |l|r|r|r|r| Non-Current Asset Schedule & Buildings (K) & Motor Vehicles (K) & Equipment (K) & Total (K) \\ Cost & & & & \\ Balance b/f & 900,000 & 700,000 & 450,000 & 2,050,000 \\ Additions & - & 200,000 & 140,000 & 340,000 \\ Disposals (at cost) & - & (150,000) & (110,000) & (260,000) \\ Balance c/f & 900,000 & 750,000 & 480,000 & 2,130,000 \\ Accumulated Depreciation & & & & \\ Balance b/f & 40,000 & 120,000 & 100,000 & 260,000 \\ Depreciation on disposals & - & (70,000) & (60,000) & (130,000) \\ Depreciation for the year & 18,000 & 150,000 & 44,000 & 212,000 \\ Balance c/f & 58,000 & 200,000 & 84,000 & 342,000 \\ Net Book Value (NBV) & & & & \\ Balance c/f & 842,000 & 550,000 & 396,000 & 1,788,000 \\ What's next? 📸