1.

The following data is given to you regarding the asset- Plant of Tinu Ltd. whose accounting year ends on 31st December every year. Plant held on 1.1.2006-₹10,000 Plant bought on 1.1.2007 – ₹20,000 Plant bought on 1.4.2007 – ₹30,000Plant held on 1.1.2006 sold on 1.4.2007 – ₹7000 Depreciation @ 10% p.a. on original cost method. Prepare Plant A/c.

Answer»

Calculation of loss of sale of plant

Original cost (1/1/2006)10,000
Less Depreciation for one year1,000
(1/1/2006 to 31/12/2006) 10000 x 10%9,000
Less Depreciation for 3 months
(31/12/06 to 1/4/2007)250
10000 \(\times\) 10/100 \(\times\) 3/12
Less sales value7,000
Loss on sale1,750



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