Question

14.On 1-1-2002, machinery was purchased for Rs. 75,000 and Rs. 5,000 were spent immediately on its
installation. On 1-7-2003 additions were made to the amount of Rs. 40.000. On 31-3-2004 machinery
purchased on 1-7-2003, costing Rs. 12.000 was sold for Rs. 11,000 and on 30-6-2004 machinery purchased
on
1-1-2002
oosting
Rs. 32,000 was sold for Rs. 26,700. On 1-10-2004. additions were made to the amount of Rs. 20.000
Depreciation was provided at 10% p.a. on the diminishing value method. Show the machinery account for
three years 2002 10 2004 (year ended 31 December)​

Answer 1

Explanation:

9. On January 1998, a machinery was purchased by Farzana for Rs 20,000. On 1 July 1999. additions were

made to the extent of Rs 4,000 on 1 April 2,000 further additions were made to the extent of Rs 2.560. On

30 June 2001. a machinery, the original value of which was Rs. 3.200 on 1 January 1998 was sold for Rs

2400. Farzana closes her books on 31 December each year,

Show the machinery account for four years from 1998 to 2001 in the books of Farzana, i depreciation is charged at

10% under onginal cost method.

e Ralance in the Machinery Account -Rs. 15,192