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a) 20% Straight Line MethodLorry A : Depreciation Expense201020% x 1000 = 200Loss on disposal of A2011(1000-200) – 750 = 50Lorry B : Depreciation expense201020% x 1600 = 320201120% x 1600 = 320201220% x 1600 = 320Lorry C : Depreciation expense201120% x 2000 = 400201220% x 2000 = 400Provision of depreciation2010200+ 320 = 5202011320+ 400 = 7202012320+ 400 = 720For statement of finacial position (balance sheet)Cost of vehicles20101000 (A) + 1600 (B) = 260020112000 (C) + 1600 (B) = 360020122000 (C) + 1600 (B) = 3600Accumulated depreciation20105202011520-200+ 720 = 104020121040+ 720 = 1760
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