The balances on the plant and machinery accounts of Sparkling Traders pic at I January 1983 were:

Plant and machinery at cost 9850 accumulated depreciation 4760 Depreciation is charged on a reducing balance basis assuming a ten year useful life on fixed assets unless otherwise indicated. Depreciation is also charged for a full year in the year of acquisition of any asset.
During 1983 the following asset movements took place:
(i) Plant and machinery which had originally cost £800 000 in 1978 was disposed of for £34650.
(ii) Machinery acquired in 198I at a cost of£1.2 million was revalued at £550 000 at the end of 1983. Any gain or loss on revaluation is to be disclosed separately to the depreciation charge for 1983. Depreciation in subsequent years, however, is to be computed on the revalued amounts.
(iii) New machinery was acquired in 1983 at a total cost of£2.5 millions. Included in the total was special machinery acquired at a cost of £500000 for a short term project. The short term project will run for only five years, beginning in 1983 and the special machinery is therefore to be depreciated over this period using the reducing balance method.
You are required

(a) To prepare journal entries to record the above transactions in the books of Sparkling Traders for 1983.

(b) To show how the above information may be included in the final accounts of Sparkling Traders pic for 1983, puhlished according to the requirements ofthe 1948-81 Companies Act.