Parkinson Ltd. depreciates its plant and machinery at 20 per cent a year on the straight line basis, for each month of ownership. From the information that follows on the next page you are required to prepare:

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(a) the plant account at cost (b) provision for depreciation account (c) balance sheet extracts for the years 19_4, 19_5 and 19_6, and (d) the plant disposal account for 19_6 Information 19_4 1 January 1 July Bought plant costing 2 000 Bought plant costing 3 000 19_5 1 October Bought plant costing 1 800 19_6 31 March Sold plant which had been bought on 1 July 19_4 for 3 000, for the sum of 1 750 1 August Bought plant costing 1.000 All acquisitions were paid for on the date of purchase by cheque, except for the 1 August 19 6 plant which was bought on credit from Steel plc.