The balance sheet as at 31 December 1983 of General Suppliers Limited included the following:
Plant and machinery at cost $100000
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 was $1200.
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.