Question

10. WDV of plant destroyed by accident is credited to
O Plant A/C
O Contractee's A/C
O Contractor's A/C
O W.L.P.​

Answer 1

The correct answer is Plant A/c

Explanation:-

Plant A/c

Even though the plant is not sold, still the value of the plant has been decreased as it has been destroyed by accident.

So, there is a decrease in asset for the company i.e a decrease in Plant.

Thus in Plant A/c the loss will be shown on Credit side to reduce the value of Plant which is shown on the Debit side of the Plant A/c. Similarly the value of loss will be credited to Plant A/c while making journal entries.

Answer 2

Answer:

correct answer is contract Account or WIP