At the beginning of the financial year on 1 April 19X5, a company had a balance on plant account of £372,000 and on provision for depreciation of plant account of £205,400.

The company’s policy is to provide depreciation using the reducing balance method applied to the fixed assets held at the end of the financial year at the rate of 20% per annum.

On 1 September 19X5 the company sold for £13,700 some plant which it had acquired on 31 October 19X1 at a cost of £36,000. Additionally, installation costs totalled £4,000. During 19X3 major repairs costing £6,300 had been carried out on this plant and, in order to increase the capacity of the plant, a new motor had been fitted in December 19X3 at a cost of £4,400.

A further overhaul costing £2,700 had been carried out during 19X4.

The company acquired new replacement plant on 30 November 19X5 at a cost of £96,000, inclusive of installation charges of £7,000.

Required:

Calculate:

{a) the balance of plant at cost at 31 March 19X6

{b) the provision for depreciation of plant at 31 March 19X6

(c) the profit or loss on disposal of the plant.

(Chartered Association of Certified Accountants)