Question

A businessman ,whose books are closed on 31 dec,purchased a machinery for Rs 50000 on Jan 1st 2005 . Additional Machinery was Acquired for Rs 10000 on 1st July 2006.Certain machinery purchased for Rs 10000 on 1st Jan 2005 was sold for 5000 on 30-06-2008 . Give the Machinery Account for 4 years writting off dep @10% P.a on written down value


Give answers plz​

Answer 1

Explanation:

Depreciation on SLM Basis = 10,000 x 10/100

                                              = RS-1,000.

Depreciation On WDV basis :-

1st year (2005-06) 

= 10,000 x 10/100

= RS-1,000.

2nd year (2006-07)

= (10,000 - 1,000) 9,000 x 10/100

= RS-9,00.

Difference in depreciation = Depreciation in SLM - Depreciation in WDV

                                            = 1,000 - 9,00

                                            = RS-100.