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

Sariah owns a ladies’ clothing business and keeps double entry bookkeeping records. The following events took place during September 2020. 1 A motor vehicle was bought on credit from Sharpe Motors $6350. 2 Ruhee, a credit customer, was declared bankrupt owing Sariah $1200. The debt is to be written off. Sariah is preparing her financial statements for the year ended 30 September 2020. She gives the following details for fixtures and fittings. 2019 October 1 Fixtures and fittings at cost $28600 Provision for depreciation of fixtures and fittings $6185 2020 January 31 Sold fixtures and received a cheque $1150 The fixtures had been purchased on 1 February 2018 for $1500 March 31 Bought new fixtures and paid by cheque $3500 Sariah’s depreciation policy for fixtures and fittings is 10% per annum using the reducing balance method. Depreciation is charged for a full year in the year of purchase, but none is charged in the year of disposal.