BOOK KEEPING FORM FOUR PRE-KIPSSA EXAMINATION

5. Machinery was bought on 1 Jan 2005 for TZS 100,000 and another one on 1 Oct 2006 for TZS 120,000. The first machine was sold on 30 June 2007 for TZS 7,200. The business financial year ends on 31 December each year. The machinery is to be depreciated at 10%, using the straight-line method. Machinery in existence at the end of each year is to be depreciated for the full year. No depreciation is to be charged on any machinery disposed of during the year.
Required: Draw up for the years 2005, 2006, and 2007.
(a) Machine A/C
(b) Accumulated provision for Depreciation A/C