Question

9) Nagraj and co. purchased a second hand machine on
1st jan 2011, for rs.45,000/- and spend &rs. 5000/- and
repairs and installed the same depreciation is pro-
-vide at the date of 10% per Annum under the straight
line method on 1st July 2014 the same machine was
sold for rs.30000/- the books are closed on 31-Dec
every year prepare an machinary A/c​

Answer 1

Explanation:

Working Notes:

1.1.11 - 50,000

31.12.11 - (less) 5,000

1.1.12 - 45,000

31.12.12 - (less) 5,000

1.1.13 - 40,000

31.12.13 - (less) 5,000

1.1.14 - 35,000

1.7.14 - (less) 2,500

Book Value - 32,500 Selling Price - (less) 30,000

Loss - 2,500