Assets (Plant)

1995 £ 1995 £
Jan 1 Cash / Bank xxx Dec 31 Balance C/D xxx
Jul 1 Cash / Creditor xxx xxx
xxx
1996 1996
Jan 1 Balance B/D xxx Sep 1 Disposal a/c at (cost) xxx
July 1 Cash xxx Dec 31 Balance C/D xxx
xxx xxx

Provision for depreciation A/C

1995 £ 1995 £
Dec 31 Balance C/D xxx Dec 31 P&L a/c (w-1) xxx
xxx xxx
1996
Sep 30 Disposal a/c xxx 1996
Dec 31 Balanc C/D xxx Jan 1 Balance B/D xxx
xxx Dec 31 P&L a/c (W-2) xxx
xxx

Asset Disposal A/C

1996 1996
Sep 1 Asset xxx Sep 1 Provision for Dep xxx
Sep 1 P&L a/c (Profit) xxx Sep 1 Cash/parts exchange value xxx
xxx Sep 1 P&L a/c (Loss) xxx
xxx
 P&L A/C ---- Extracts.
1995
Gross profit NIL
Add: profit on disposal (if any) xxx
xxx
Less expense
Provision for depreciation xxx
Loss on disposal of asset (if any) xxx
Balance sheet-----Extracts.
Cost Depreciation N.B.V. (Net Book Value)
1995
plant xxx xxx xxx
1996
plant xxx (xxx) xxx
Note: In balance sheet only balance C/D will be taken from asset a/c and
provision for depreciation a/c for each year.
Annual depreciation: Cost of asset *Rate of depreciation
Rate of depreciation: Annual depreciation *100
Cost of assets
Scrap value: Cost---Accumulated depreciation (Annual depreciation * useful life
Useful life: Cost—Scrape value
Annual Depreciation