Question

Tings 3,000]
On 1st April, 2011, Ashok & Sons purchased a plant costing = 60,000. He purchased another plant on Ist
October, 2011 for 7 40,000 and on 1st July, 2012, for = 20,000. On 1st January, 2013. One-third of the
machine purchased on 1st April, 2011 became obsolete and was sold for F 6,000.
Depreciation is charged @ 10% per annum on straight line method and accounts are closed on 31st
December each year.
Prepare plant account and depreciation account in the books of Ashok & Sons for the first three years.
[Ans. Balance in plant A/c 777,000, Loss on sale 7 10,500]​

Answer 1

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