Currant commenced business on 1.10.X2 purchasing fixtures and fittings for £25,000 and a van for £16,000. The fixtures and fittings were estimated to have a useful life of eight years and a residual value of £1,800. Further fittings were purchased on 1.11.X5 for £15,200 with nil residual value.

During December 20X6 the van was involved in an accident and the insurance assessors considered it a write-off. A cheque for £3,200 was received in December from the insurers in full settlement. Another van was purchased on 5 January 20X7 at a cost of £18,500. Depreciation policy of Currant is to charge a full year in the year of purchase and none in the year of sale, and to depreciate fixtures and fittings on a straight line basis and vehicles by 25% reducing balance.

Prepare the ledger accounts for the two years ending 30.9.X6 and 30.9.X7 for each non-current asset together with related provision for depreciation and the sale of asset accounts. Show the balance sheet extract for fixed assets as at the two year ends.