On 1st August, 2020, Hindustan Toys Ltd. purchased a plant for ₹ 12,00,000. The firm writes off depreciation at 10% p.a. on the diminishing balance and the books are closed on 31st March each year

On 1st August, 2020, Hindustan Toys Ltd. purchased a plant for ₹ 12,00,000. The firm writes off depreciation at 10% p.a. on the diminishing balance and the books are closed on 31st March each year. ON 1st July, 2022, a part of this plant of which the original cost was ₹ 1,80,000 was sold for ₹ 1,00,000 and on the same date a new plant was purchased for ₹ 4,00,000. Show the Plant Account and Provision for Depreciation Account for three years ending 31st March, 2023.

[Ans. Balance of Plant A/c on 31st March, 2023 ₹ 14,20,000; Balance of Provision for Depreciation A/c on 31st March, 2023 ₹ 2,78,880; Loss on sale of Plant ₹ 47,420.]