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

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

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

Buildings (2% per annum on cost):

• Depreciation = K 900,000 $\times$ 2% = K 18,000

Motor Vehicles (20% straight line):

• Depreciation on assets held for full year: (K 700,000 - K 150,000) $\times$ 20% = K 550,000 $\times$ 20% = K 110,000
• Depreciation on additions: K 200,000 $\times$ 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 $\times$ 10% = K 30,000
• Depreciation on additions: K 140,000 $\times$ 10% = K 14,000
• Total depreciation for the year: K 30,000 + K 14,000 = K 44,000

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