Jabali Ltd. started its operations on 1 January 2008. The company acquired several items of plant for its use. The amounts for the plant acquisitions, disposals...

      

Jabali Ltd. started its operations on 1 January 2008. The company acquired several items of plant
for its use. The amounts for the plant acquisitions, disposals and depreciation far the years 2008, 2009
and 2010 are shown below.
The amounts for the year 2011 have not yet been computed.
Plant movement extracts for the years ended:
fig111652019933.png

Additional information:
1. Disposals took place at the beginning of the financial years as follows:
Date of disposal for the year ended Plant cost Sales
31 December proceeds
Sh'000' Sh'000'
Disposal of plant A 2010 15,000 8,000
Disposal of plant B 2011 30,000 21,000
2. Plant A and plant B were sold and replaced on the same date when plant C and plant D
were acquired. Plant D cost Sh.50 million while the value of plant C is to be derived.
3. Depreciation is charged at 20% on reducing balance.
Required:
(i) Extract of the plant movement schedule for the years ended 200S. 2009, 2010 and 2011
(ii) Profit or loss arising on disposal of plant A and plant B.

  

Answers


Kavungya
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Kavungya answered the question on May 16, 2019 at 06:38


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