Atto Electrical had the following non-current assets on 31 March 2013. Net book value $ Premises (cost $50000) 48000 Motor vehicles (cost $16000) 12000 Computers 6000 Atto Electrical has the following depreciation policy. Premises are depreciated at the rate of 2% per annum by straight-line method. Motor vehicles are depreciated at the rate of 25% per annum by diminishing (reducing) balance method. Computers are depreciated by revaluation method. A full year's depreciation is charged on all non-current assets owned at the end of the financial year. Additional information 1 There were no purchases or sales of non-current assets during the year ended 31 March 2014. 2 The following purchases of non-current assets were made during the year ended 31 March 2015. Payments were made by cheque. $ Premises 30000 Motor vehicles 9000 Computers 3200 3 Computers were valued as follows: $ 31 March 2014 4200 31 March 2015 6000

1. (a)Explain the term depreciation.[2]
2. (b)State one cause of depreciation of a computer.[1]
3. (c)Complete the table to show the depreciation to be charged to the income statement for each of the years ended 31 March 2014 and 31 March 2015. Premises Motor vehicles Computers Year ended 31 March 2014 $ Year ended 31 March 2015 $[6]
4. (d)(i)Prepare the following ledger accounts for each of the years ended 31 March 2014 and 31 March 2015. Balance the accounts and bring down the balances on 1 April. Motor vehicles account Date Details $ Date Details $[4]
5. (d)(ii)Motor vehicles provision for depreciation account Date Details $ Date Details $[5]
6. (e)Identify which two of the following accounting principles/concepts support the charging of depreciation in an accounting year. Accruals/Matching Dual aspect Going concern Materiality Money measurement 1 2[2]