Answer:
Follows are the solution to this question:
Explanation:
30.06.2017: Cash/Bank Account Dr. $450000
Loss to Plant in revenue Dr. $150,000
Cumulative Depreciation Dr. $300000
To the Factory Account $900000
(Selling the plant at a loss of $150000)
Start buying by Jordan Ltd. of Equipment
30.06.2017 Plant Account Dr. $ 450000
To Cash /Bank Account $450000
(Being an Equipment Buyer)
30.06.2018 Depreciation Account Dr. $90000
To the Depreciation Accrued $90000
(Depreciation has been claimed for the plant)
30.06.2018 Profit and Loss Account Dr. $90000
To Depreciation Account $90000
(P&L Account paid for depreciation)