A business purchased new plant and machinery for $38,000. The cost was settled by the payment of
Question:
A business purchased new plant and machinery for $38,000. The cost was settled by the payment of $34,000 by cheque and the part exchange of two items of plant and machinery for the balance. The two items part exchanged had cost $14,000 and $8000 originally and had net book values of $5000 and $1000. The following were the balances of the plant and machinery account in the business's books of account at the date of the part exchange: Cost $160,000, Provision for depreciation $96,00, Net book value $64,000. Complete the blowing accounts in the business's books of account.
a. Plant and machinery at cost account.
b. Plant and machinery provision for depreciation account.
c. Disposal of non-current assets account.
Step by Step Answer:
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone