On 1 January 2003, Pesy Limited brought into full operation its Liru Factory of
producing bottle tops. The following expenditure had been incurred up to that
date.
Sh.
Factory building
(including store and showroom of Sh.600,000 and
800,000 respectively)
New machinery installed: Fixed
Moveable
Delivery trucks (6980cc each)
Office furniture
Computers
Workers’ canteen
5,600,000
8,000,000
2,000,000
4,800,000
1,600,000
2,400,000
800,000
In 2005, additional machinery worth Sh.1,200,000 was purchased and installed in the
store at a cost of Sh.320,000. It was brought to use on 1 January 2005 to produce can
tops. A saloon car worth sh.600,000 was also purchased.
Required:
Compute the capital allowances due to the company in 2003, 2004 and 2005.