A company depreciates its plant at the rate of 25 per cent per annum, straight line methods, for each month of ownership. From the following details draw up the plant account and the provision for depreciation account for each of the years 20x0, 20x1,20x2 and 20x3. 20x0 Bought plant costing $5200 on 1 January. 20x1 Bought plant costing $4200 on 1 October. 20x2 Bought plant costing $5600 on 1 September 20x3 Sold plant which had been bought for $5200 on 1 January 20x0 for the sum of $1620 on 31 August 20x3. You are also required to draw up the plant disposal account and the extracts from the statement of financial position as at the end of each year.
A company depreciates its plant at the rate of 25 per cent per annum, straight line methods, for each month of ownership. From the following details draw up the plant account and the provision for depreciation account for each of the years 20x0, 20x1,20x2 and 20x3. 20x0 Bought plant costing $5200 on 1 January. 20x1 Bought plant costing $4200 on 1 October. 20x2 Bought plant costing $5600 on 1 September 20x3 Sold plant which had been bought for $5200 on 1 January 20x0 for the sum of $1620 on 31 August 20x3. You are also required to draw up the plant disposal account and the extracts from the statement of financial position as at the end of each year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company depreciates its plant at the rate of 25 per cent per annum,
20x0 Bought plant costing $5200 on 1 January.
20x1 Bought plant costing $4200 on 1 October.
20x2 Bought plant costing $5600 on 1 September
20x3 Sold plant which had been bought for $5200 on 1 January 20x0 for the sum of $1620 on 31 August 20x3.
You are also required to draw up the plant disposal account and the extracts from the
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