Question

0.
On 1st October, 2018 Ashwin purchased a machine for F2,25,000 on credit
from
Aakaash. The estimated life is 5
years
and its
scrap
value after 5
years will be €20,000. Depreciation is to be charged on straight line basis.
prepare machinery account for first three years.​

Answer 1

Explanation:

20,000 = 5 years

1yr = 20000/5

= 4000

machine amtv= 2,25,000

1yr = 4000

1 month = 4000/12

1 month = 333.33

2,25,000 + 333.33 + 4000 +4000

= 2,25,000+ 8333.33

= 2,33,333.33