Question

2.2
A company had a balance of Rs.4,0,5000 on 19 January 2018 in its machinery
account ,10% per annum depreciation was charged by diminishing balance method
On the 1* July,2018 the company sold a part of the machinery for R$ 87,500 ( which
was purchased on 1 January 2016 for Rs.1.20.000) and on the same date, the
company purchased a new machinery for Rs.2,50.000 .On 31 December 2018 the
directors of the company decided to adopt the fixed instalment method of
depreciation as per AS-10( Revised) instead of diminishing balance method; the rate
of depreciation remaining the same.
Prepare Machinery Account in the books of the company for the year ended 2018.​

Answer 1

Answer:

 The manager directs a disproportionate number of purchase orders to a supply company owned by the company .

Explanation:

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