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 2014, 2015, 2016 and 2017.

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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2014 Bought plant costing 2,600 on 1 January. 2016 2017 Bought plant costing 2,100 on 1 October. Bought plant costing 2,800 on 1 September. Sold plant which had been bought for 2,600 on 1 January 2014 for the sum of 810 on 31 August 2017.