Question

9. Vardhan purchased a Machine on 31st March 2017 for 70,000. Depreciation is charged at 10% under original cost method. After three years he found that the Machine was not suitable and sold for 55,000. Show the Machine a/c. (Ans: Profit = Machine A/c Balance: 6,000) ​

Answer 1

Explanation:

as it is profit you have write it in debit side...

first u have to find out total cost after depreciation and subtract it from the sold amount then u will find out profit or loss

55000-49000(after depreciation from 56000)=6000

profit=6000