The balance sheet as at 31
December 1983 of General Suppliers Limited included the following:
Plant and machinery at
Aggregate Depreciation $17000
The company provide
depreciation on the cost of plant and machinery at the rate of 10% per annum
using straight line method.
The bulk of the plant and
machinery was acquired when the company commence business further plant and
machinery costing $20000 was acquire on 1 July 1983.
On 31 March 1984 plant and
machinery written down value on 31 December 1983 was $2000 was sold $500.
On 1 July 1984 a machine
was acquire at cost of $1000 when the company commence business was
part-exchange for a new machine the balance of the purchase price being met
with cheque for $800.
The list price of new machine
On 1 October 1984, the
company transfer to its factory a machine which had been included in is trading
stock and which bore a price label of $15000.
The company always makes
gross profit of 40% on machinery sales.
1) the plant and machinery
at cost for year ended 31 December 1984
2) the disposal of plant
and machinery account for year ended 31 December 1984
3) the entry in the
balance sheet as at 31 December 1984 for plant and machinery.