The Balance Sheet of Dann Products at 31 December 1982 revealed the following information:

Plant and equipment, at cost Less accumulated depreciation Net book value

£

103000 53700 49300 The equipment is depreciated on the straight-line basis . During 1983 the following transactions took place :

(i) Equipment originally acquired at a cost of £ 15000 was sold for £4200 . The net book value of the equipment at the date of disposal was £6300.

(ii) Equipment which originally cost £64000 on I January 1981 with an estimated useful life of four years and residual value of £8000 at the end ofthat time was re-evaluated and given a revised remaining useful life after 1983 of four years but with a salvage value of only £2000 at the end of that time .

(iii) Equipment was acquired on I July 1983 at a net cost of £46000 after allowing a trade-in of £6000 on existing equipment which had originally cost £24000 and had a net book value on 31 December 1982 of £7000 . A reasonable second-hand disposal value of the old equipment on I July 1983 was £5000.

The new equipment had an estimated useful life of six years and a salvage value of £3000 at the end of that time .

Required

(a) Prepare journal entries to record each of the above transactions and post these to the relevant ledger accounts.

(b) Identify the depreciation expense for 1983 and any loss or gain on disposal of fixed assets.

(c) Show the amount to be included in the Balance Sheet at 31 December 1983 for plant and equipment.