Question

Das & co. purshed a second hand plant on 1st july 2005 at cost of rs. 90,000 and incurred there on rs. 4,000 as erection charges.the co. wants to proviedes depreciation at 10% p.a. on written down value method. on 30.06.2006 half of the plant was found unsuitable and disposed off for rs.30,200. on the same day a new plant was purchased at a cost of rs.40,000 and spent rs.4,000 towards installation charges. prepare plant account for the first three years assuming that the account closing year is the calendar year

Answer 1

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