Question

on 1/4/13 Santosh Co.Ltd Punchared a plant costing
85000 and spent 15000 for its erecction. On 31/3/15 the plant was sold for 75000. On
1/4/15 a new plant was purchased for 50000
The firm changes depreciation at 10%. p. a under Straigh Line Method
Prepare: Plant a/c and Depreciation a/c for first 4 years.
plzz help me out with this​

Answer 1

 As per Question solved in explanation

we find the following results

1. Loss on sale of Plant   5000

2. the value of 2nd Plant at the end of 4 years 40000

3. the first plant in now not available after sale          

____________________________________________________________

Explanation:

                                        Plant Account

_________________________________________________

Date       Particular      Amount       Date    Particulars     Amount

__________________________________________________1/4/13    To Bank         100000      31/3/14   By Dep       100000

                                                                         By bal c/d      90000

1/4/14  To Bal b/d        90000      31/3/15   By Dep             10000

                                                                       By bank            75000

                                                                       By loss on sale  5000

1/4/2015 To Bank      50000        31/3/16   By Dep               5000

                                                                      By bal C/d         45000

1/4/2016 To bal B/d  45000          31/3/17   By Dep            5000

                                                                         By bal c/d      40000

                                     Depreciation Account

1/4/13  To Plant       10000              31/3/14  By P&L          10000

1/4/14  To Plant       10000               31/3/15  By P&L          10000

1/4/15   To Plant       5000               31/3/16  By P&L            5000

1/4/16   To Plant        5000               31/3/17  By P&L            5000