The following balances appeared in the balance sheet of Addax, a limited liability company, at 31 March 2001.

$ Plant and equipment-cost 840,000 Accumulated depreciation 370,000

In the year ended 31 March 2002 the following transactions took place:

(1) Plant, which had cost $100,000 with a written down value of $40,000, was sold

for $45,000 on 10 December.

(2) New plant was purchased for $180,000 on 1 October 2001.

It is the policy of the company to charge depreciation at 10% per year on the straight- line basis with a proportionate charge in the year of acquisition and no charge in the year of sale. None of the plant was over ten years old at 31 March 2001.

2

(a) Prepare ledger accounts recording the above transactions.