6. On 1st April 2015, Kaya Ltd. purchased machinery for ₹1000000. The estimated useful life of the machine is 5 years. The residual value will be ₹200000. The depreciation was charged using the Straight-line Method. However, on 1st April 2018, it was decided to change the method of depreciation to Written- down value Method with retrospective effect. The rate of depreciation is 20%. You are required to prepare Machinery A/c and show the workings. (
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The estimated useful life of the machine is 5 years. The residual value will be ₹200000. The depreciation was charged using the Straight-line Method. However, on 1st April 2018, it was decided to change the method of depreciation to Written- down value Method with retrospective effect.
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