(partly sales of plant) X ltd purchased a plant on April 1, 2014 for 1,20,000 Addition to plant - Accountancy - Depreciation Provisions and Reserves

Question

(partly sales of plant) X ltd purchased a plant on April 1, 2014
for 1,20,000 Addition to plant were made on 01 07 2014 for 50,000
and on 01-10-2015 with plant costing 40,000
On July 1, 2016 plant costing 50,000 on 01 04 2014 was sold for
30,000 and plant bought on 01 07 2014was also sold for 30,000 on
October 1, 2016
Depreciation was provided @10% p a on straight line method ojn
calender year basis Prepare plant account from 2014 to 2016

Komal Rani · Accepted Answer

Dear Student

Plant
A/c

Date
Particulars
Amount
Date
Particulars
Amount

1/4/2014
To Bank
120000
31/03/15
By Depreciation A/c
15750

1/7/2014
To Bank
50000
31/03/15
By Balance c/d
154250

170000

1/4/2015
To Balance c/d
154250
31/03/16
By Depreciation A/c
19000

1/10/2015
To Bank
40000
31/03/16
By Balance c/d
175250

194250

1/4/2016
To Balance c/d
175250
1/7/2016
By Bank
30000

1/7/2016
By Depreciation A/c
1250

1/7/2016
By Loss on sale
8750

1/10/2016
By Bank
30000

1/10/2016
By Depreciation A/c
2500

1/10/2016
By Loss on sale
8750

31/03/16
By Depreciation A/c
11000

31/03/16
By Balance c/d
83000

175250

Calculation of
Depreciation

Year
Depreciation

2014-15
120000*10%
12000

50000*10%*9/12
3750

15750

2015-16
120000*10%
12000

50000*10%
5000

40000*10%*6/12
2000

19000

2016-17
70000*10%
7000

40000*10%
4000
11000

Profit / Loss on sale of Plant sold on
01/07/16

Cost

50000

Less:
Depreciation

2014-15
5000

2015-16
5000

2016-17
1250
-11250

Less:
Sale Value

-30000

Loss on sale

8750

Profit / Loss on sale of Plant sold on
01/10/16