The cost of plant in use with Hand Sanitizer Ltd (Hand Sanitizer), a manufacturing firm on
1
st April 2018 was GH₵375,000 against which the accumulated depreciation stood at
GH₵157,500 on that date. The firm provided depreciation at 30% of the diminishing value.
On 31st December 2018 two plants costing GH₵22,500 and GH₵18,000 respectively, both
purchased on 1st October 2015, had to be discarded because of damages and had to be replaced
by two new plants costing GH₵30,000 and GH₵22,500 respectively.
One of the discarded plants was sold for GH₵12,000, against the other it was expected that
GH₵4,500 would be realisable.
Required:
Show the relevant accounts in the ledger of Hand Sanitizer for the year ended 31st March 2019.
Answers: 3
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The cost of plant in use with Hand Sanitizer Ltd (Hand Sanitizer), a manufacturing firm on
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