17,730.20
17,730.20
14.006.86
1-1-95 To balance b/d
Hlustration 90
9
A company whose accounting year is the calendar year, purchased on
1-1-93 a machine for Rs. 40,000. It purchased further machinery on 1st Oct. 1993
for Rs. 20,000 and on 1st July 1994 for Rs. 10,000. On 1-7-1995, 7 th of the machinery
installed on 1-1-1993 became obsolete and was sold for Rs. 6,800.
Show how the machinery account would appear in the books of the company for all
the 3 years under Diminishing Balance method. Depreciation is to be provided at 10%p.a.
[Bharathiar, B.Com. April 2001; Mysore University, B.Com.)
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