0.7. Bhushan & Company purchased a Machinery on 1st April, 2015,
54,000 and spent 6,000 on its installation. On 1st December, 2016, it purcha
nother machine for 30,000.
On 30th June 2017, the first machine purchased on 1st April, 2015, is sold
36,000 and on the same date it purchased a new machinery for $80,000,
On December 1, 2018, the second machine (purchased on December 1, 2016)
co sold off for 26,000.
Answers
Answered by
8
Answer:
Machinery A/C Dr 60,000
To Bank A/C 60,000
Machinery A/C Dr 30,000
To Bank A/C 30,000
Bank A/C Dr 36,000
Profit & Loss A/C Dr 24,000
To Machinery A/C 60,000
Machinery A/C Dr 80,000
To Bank A/C 80,000
Bank A/C Dr 26,000
Profit & Loss A/C Dr 4,000
To Machinery A/C 30,000
Explanation:
You can alternatively use Depreciation A/C in place of Profit and Loss A/C. since no detail about depreciation is given and so the difference is treated as loss on sale.
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