Self-test At 31 December 2009 Maureen’s ledger contained the following balances:

Plant and machinery 50,000 Provision for depreciation on plant and machinery 22,500 During the year ended 31 December 2010 the following transactions took place:

On 31 March Maureen exchanged part of her machinery for more modern equipment.

She received a trade-in allowance on the old plant of £7,000 and the balance of £2,000 was paid by cheque.

The old plant cost £13,000 when it was originally purchased on 1 July 2007.

Plant and machinery is depreciated on a strict time basis at 20 per cent p.a.

using the reducing balance method.

You are required to show the ledger accounts for the above items. You need to show what charges are to be made to the profit and loss account for the year in respect of the plant sold.