On Jan 01, 2012 Jain & Sons purchased a second hand plant costing `Rs.` 2,00,000 and spent `Rs.` 10,000 on its overhauling. It also spent `Rs.` on transportation and installation of the plant. It was decided to provide for depreciation @ `20%` on written down value. The plant was destroyed by fire on July 31, 2015 and an insurance claim of `Rs.` 50,000 was adimitted by the insurance company. Prepare plant account, accumulated depreciation account and plant disposal account assuming that the company closes its books on December 31, every year.

Explanation

Working Notes:
`{:("Calculation of Depreciation Amount",(Rs.)),("Original cost on 01.01.2012","2,15,0000"),("(2,00,000+10,000+5,000)",),("Depreciation for the year 2012",),("Depreciation for the year 2012",),("(@20% "of" Rs. 2,15,000)",underline (("43,000"^(1)))),(,"1,72,000"):}`
Depreciation , Provision and Reserves
`{:("Depreciation for the year 2013",),("(@20% "of"Rs. 1,72,000)",underline(("34,400"^(2)))),(,"1,37,600"),("Depreciation for the year 2014",),("(
@20% of Rs. 1,37,600)",underline(("27,520"^(3)))),(,"1,10,080)"),("Depreciation till 31.07.15",underline(("12,843"^(3)))),("(@20% of Rs 1,10,080)","97,273"),("Insurance claim",underline "(50,000)"),("Loss on disposal","47,273"^(5)):}`