Question

7. Star Techno Traders purchased a packing machinery on 1st August, 2018 for?
40,000. On 1st October, 2019 it purchased another machine for 40,000. On 301
June, 2020 it sold off the first machine purchased in 2018 for 58,000 and on the
same date purchased a new machinery for * 1,00,000. Depreciation is provided a
20% p.a. on the original cost every year. Books of accounts are closed on 31st
March every year.
Show the machinery Account for three years. CGST and SGST are charged @ 6%
each on purchase and sale of machinery,
Ans.(Profit on sale of machine 2,500)
(Balance of Machine 71,13,000)
Note:-CGST and SGST paid at the time of purchase of machinery is not to be
included in the cost of machinery because it is to be set off against CGST and SGST
collected on sale of goods and sale of assets.​

Answer 1

Answer:

Contact Rahul Sir @7007633645 for Zoom Classes