a company had a balance of RS 4,0,5000on 1 january 2018 in its machinery account 10 %per annum depreciation charge by diminishining balance method .on the first july 2018 the company sold a part of a machinery of RS 87,500 (which was purchase on 1 july 2016 for the RS 1,20,000)and on the same date the company purchase a new machinery for RS2,50,000.on 31 december 2018 as the director of the company decided to adopt the fixed installment method of depreciation as per AS-10 (reviced)instesd of deminishing balance method the rate of depreciation remaining same .prepare machinery account in the book of the company for thr year ended 2018
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The manager directs a disproportionate number of purchase orders to a supply company owned by the .
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