Sema plc, a company in the heavy engineering industry, carried out an expansion programme in the 2012 financial year, in order to meet a permanent increase in contracts. The company selected a suitable site and commissioned a survey and valuation report, for which the fee was £1,500. On the basis of the report the site was acquired for £90,000. Solicitors’ fees for drawing up the contract and conveyancing were £3,000. Fees of £8,700 were paid to the architects for preparing the building plans and overseeing the building work. This was carried out partly by the company’s own workforce (at a wages cost of £11,600), using company building materials (cost £6,800) and partly by subcontractors who charged £69,400, of which £4,700 related to demolition of an existing building on the same site.

The completed building housed two hydraulic presses. The cost of press A was £97,000 (ex works) payable in a single lump sum two months after installation. Sema was given a trade discount of 10% and a cash discount for prompt payment of 2%. Hire of a transporter to collect the press and convey it to the new building was £2,900. Installation costs were £2,310 including hire of lifting gear, £1,400. Press B would have cost £105,800 (delivered) if it had been paid for in one lump sum. However, Sema opted to pay three equal annual instalments of £40,000 starting on the date of acquisition. Installation costs were £2,550 including hire of lifting gear £1,750.

Required:

(a) Using such of the above information as is relevant write up the Premises account and Plant account.

(b) State with reasons which of the above information was excluded from the accounts you wrote up.