Question

6. A company whose accounting year is the calendar year purchased on 1st April 1986
machinery costing Rs. 30,000. It purchased further machinery on 1st October 1986
costing Rs. 20,000 and on 1st July 1987 costing Rs. 10,000. On 1st Jan. 1988 one-
third of the machinery installed on 1st April 1986 became obsolete and was sold for
Rs. 30000. Show how the machinery A/c would appear in the books of the company
Machinery is depreciated at 10% p.a. under fixed instalment method.​

Answer 1

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Answer 2

loss on sales of machinery 5250 balance of machinery account on 31.12.88 38500