Brannan own plant and equipment which is used on their construction sites. The depreciation policy of the company is to charge a full year’s depreciation in the year of acquisition but none in the year of disposal.

During the year ended 31 March 20X1 the following changes took place:

All the remaining assets had been owned for less than four years. Depreciation is charged on a straight-line basis using a rate of 25 per cent per annum. The balance on the plant and equipment account at 1 April 20X0 was £187,600 and on the provision for depreciation account £62,100.

Required:

Prepare the following accounts:

(a) A plant and equipment account.

(b) A plant and equipment provision for depreciation account.

(c) A disposal account.

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Purchases 20X0/1 Date Cost 1 July 8,200 31 August 6,800 1 December 12,600 28 February 7,500 Sales 20X0/1 Date Cost Date of purchase Receipts 15 August 4,200 15 May 19X6 250 30 September 5,800 1 December 19X4 100 29 December 9,000 1 February 19X8 1 March 11,000 31 March 19X9 510 3,000