The accounting records of Riffon, a limited liability company included the following balances at 30 June 20X2: $'000
Office buildings – cost 1,600
– accumulated depreciation (10 years at 2% per year) 320
Plant and machinery – cost (all purchased in 20X0 or later) 840
– accumulated depreciation
– (straight line basis at 25% per year) 306
During the year ended 30 June 20X3 the following events occurred:
20X2
1 July It was decided to revalue the office building to $2,000,000, with no change to the estimate of its remaining useful life.
1 October New plant costing $200,000 was purchased.
20X3
1 April Plant which had cost $240,000 and with accumulated depreciation at 30 June 20X2 of $180,000 was sold for $70,000.
It is the company's policy to charge a full year's depreciation on plant in the year of acquisition and none in the year of sale.
Required
Prepare the following ledger accounts to record the above balances and events:
(a) Office building: cost/valuation
accumulated depreciation revaluation reserve
(b) Plant and machinery: cost
accumulated depreciation disposal