A company depreciates its plant at the rate of 25 per cent per annum, straight line method, for each month of ownership. From the following details draw up the plant account and the provision for depreciation account for each of the years 2010, 2011, 2012 and 2013.

You are also required to draw up the plant disposal account and the extracts from the statement of financial position as at the end of each year.

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2010 Bought plant costing 2,600 on 1 January. Bought plant costing 2,100 on 1 October. 2012 Bought plant costing 2,800 on 1 September. 2013 Sold plant which had been bought for 2,600 on 1 January 2010 for the sum of 810 on 31 August 2013.