Question
(b) A Company depreciates its plant at the rate of 25 per cent per annum straight line method for each month of ownership. 2016
(b) A Company depreciates its plant at the rate of 25 per cent per annum straight line method for each month of ownership. 2016 Bought plant costing K 2 600 000 on 1 January Bought plant costing K 2 100 000 on 1 October 2018 Bought plant costing K 2 800 000 on 1 September 2019 Sold plant which had been bought for K 2 600 000 on 1 January 2016 for the sum of K 810 000 on 31 August 2019. From the above details prepare for each of the years 2016,2017,2018 and 2019 (a) the plant account, (b) the provision for depreciation account (c) the plant disposal account (6 Marks) (9 Marks) (5 Marks) [Total: 20 Marks]
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