Accounting for depreciation and disposal of non-current assets — practice question

Lottie operates as a trader. The end of her financial year falls on 30 April. She maintains her petty cash book under the imprest system. The imprest amount is $150. The totals of the payments analysis columns in her petty cash book for April 2024 are as follows: Cleaning $21 Stationery $47 Sundry expenses $44 In April 2024, Lottie was refunded $15 for damaged stationery, and this money went into petty cash. The petty cash book is classified as a book of prime entry. On 30 April 2024, Lottie disposed of a motor vehicle for $6000 on credit to Y Limited. She originally bought it on 1 May 2021 for $12 000. Lottie charges depreciation on vehicles at 25% using the reducing balance method. No depreciation is charged in the year the asset is sold. Lottie sells 3 different types of goods. Her inventory at 30 April 2024 is as follows: Type A: number of units 60, purchase price per unit $14, net realisable value per unit $20, carriage inwards per unit $1 Type B: number of units 85, purchase price per unit $17, net realisable value per unit $24, carriage inwards per unit $0 Type C: number of units 30, purchase price per unit $21, net realisable value per unit $22, carriage inwards per unit $2 Lottie pays $360 per annum for insurance. On 1 May 2023, insurance of $60 was prepaid. On 1 August Lottie paid $360 by bank transfer for the year 1 July 2023 to 30 June 2024.