The following details were taken from the books of Makubaliano Ltd.

Question

01/01/2016; Buildings at cost amounted to TZS.650,000,000

01/01/2016: The balance in the provision for depreciation account was TZS.56,000,000

01/06/2016: Purchased a building for TZS.120,000,000

01/07/2016: Sold a building for TZS.85,000,000 which cost TZS.100,000,000. The book value of this building on 01/07/2016 was TZS.60,000,000

31/12/2017: The total depreciation for the year ended 31st December 2016 was TZS.32,000,000

01/01/2017: The buildings were revalued at TZS.750,000,000

31/12/2017: Provide for depreciation at the rate of 3% of the value of the buildings on 1st January 2017

 

REQUIRED:

Prepare:

(i) Buildings account for the two years 2016 and 2017.

(ii) Provision for depreciation account for the two years 2016 and 2017.

(iii) Buildings disposal account for the year ended 31st December 2016.

(iv) Revaluation reserve account

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