Question

2. On 1st April, 2015, X Ltd. purchased a machine costing 4,00,000 and spent
its installation. The estimated life of the machinery is 10 years, after which its read
value will be 50,000 only. Find the amount of annual depreciation according to the
Instalment Method and prepare Machinery Account for the first three years. The books
closed on 31st March every year.
[Annual Depreciation-*40,000; Balance of Machinery A/c on 1st April, 2018–3,30,000
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Answer 1

Answer:

Explanation:

Bhai installation amount missing hai

To maintain installation ka amount 50000 man kar chal

Annual depreciation =cost price - scrap value÷life of machine

450000-50000÷10

400000÷10=40000

First year mai 450000-40000=410000

Balance c/d 410000

Next year balance b/d 410000

410000-40000=370000

Aise hi har saal minus kar diyo three year tak