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Business, 25.05.2020 22:00 keke2933

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.

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Answers: 3

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