Question

Question +
From the following information provided by Rex Co. Ltd., you are required to prepare its
Plant and Machinery Account for the years 2017-2018 and 2018-19.
The company charges depreciation a 10% per annum on the Straight Line Method.
It closes its books of accounts on 31" March, every year.
Date Particulars
1/4/17 Balance standing in the Plant & Machinery Account
1,00,000
(Cost price of the plant in use was 3,00,000)
1/4/17 Cost price of machine purchased
10,000
1/4/17 One machine which had cost 3,300, in the year 2004 and
so was not in use, was sold as scrap for 200
1/4/18 Cost price of machine purchased
6,000
1/4/18 One machine which had cost 4,000,'on l' April, 2014,
was sold for 2.700
1/10/18 Cost price of machine purchased
8,000​

Answer 1

It’s a simple question.
You just have to focus on the main points.