Question

12. Pass journal entries and prepare Machinery Account:
2019
March 1 Purchased machinery for cash 35,000.
Installation charges paid * 2,500.
March 7 Purchased machinery on credit from Tahira 52,000.
Installation charges paid by cheque 1,000.
March 12 Machinery of the book value of 12,000 sold for * 15,000.
March 16 Machinery of the book value of * 20,000 sold for *17,500.
March 23 Machinery withdrawn for personal use 7,000.
March 30 Depreciate machinery 4,000.
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Answer 1

Answer:

12. Pass journal entries and prepare Machinery Account:

2019

March 1 Purchased machinery for cash 35,000.

Installation charges paid * 2,500.

March 7 Purchased machinery on credit from Tahira 52,000.

Installation charges paid by cheque 1,000.

March 12 Machinery of the book value of 12,000 sold for * 15,000.

March 16 Machinery of the book value of * 20,000 sold for *17,500.

March 23 Machinery withdrawn for personal use 7,000.

March 30 Depreciate machinery 4,000.