Question

e firm's plant and machinery account at 31 December, 2015 and the corresponding depreciation provision account,broken down by year of purchase are as follows:,
1998
2,00,000
2,00,000
2004
3,00,000
3,00,000
-under
2005
10,00,000
9,50,000
2006
7,00,000
5,95,000
2013
5,00,000
75,000
2014
3,00,000
15,000
30,00,000
21,35,000
hiner
arged
Depreciation is at the rate of 10% per annum on cost. It is the Company's policy to assume that all
purchases, sales or disposal of plant occurred on 30th June in the relevant year for the purpose of
calculating depreciation, irrespective of the precise date on which these events occurred.
has a
During 2015 the following transactions took place:
1. Purchase of plant and machinery amounted to ₹ 15,00,000
2 Plant that had been bought in 2004 for 170,000 was scrapped.
3. Plant that had been bought in 2005 for 90,000 was sold for 5,000.
4 Plant that had been bought in 2006 for ₹2,40,000 was sold for 15,000.

Answer 1

step 1.look at working

2.then plant and machinery account

3.then provision for depreciation account

then asset disposal account