Question

M/S Anshul commenced business on ist January 2011, when they purchased plant and equipment for 7,00,000
They adopted a policy of charging depreciation at 15% per annum on diminishing balance basis and over the
years, their purchases of plant have been:
Date
Amount
7-1-2012
1-7-2015
1.50,000
2,00.000
On 1-1-2015 it was decided to change the method and rate of depreciation to straight line basis. On this date
remaining useful life was assessed as 6 years for all the assets purchased before 1.1.2015 and 10 years for the
asset purchased on 1.1.2015 with no scrap value​

Answer 1

Explanation:

1.plant and machinery account