On 01.01.2001 , a new plant was purchased by Mrs.Shweta Periwal for RS.1,00,000 and a further sum of Rs.5,000 was spent on installation .On 01.06.2002,another plant was acquired for Rs.65,000. On 02.10.2003,the first plant was totally destroyed and the amount of Rs.2,500 only was realised by selling the scraps .It was not insured .On 20.10.2003 , a second hand plant was purchased for Rs.75,000 and a further sum of Rs 7,500 was spent for repairs and Rs.2,500 on its erection .It come into use on 15.11.2003.Depreciation has been provided @ 10% on the original cost annually on 31st december .It was the practice to provide depreciation for the full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year . In december 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method of depreciation with restrospective effect in respect of the existing items of plant and to make necessary adjustment on 31.12.2003. depreciation over/under charged=
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