Question

A company had brought machinery for 100000 including therein a boiler worth 10000 Depreciation was charged on reducing balance method at the rate of 10%p.a. for first five years and machinery account was credited accordingly during the fifth current year, the boiler become useless at the end of my on the phone with my account and of damage to some of its vitul parts the damage boiler is sold for 2000 prepare the machinery account for five years

Answer 1

Answer:

Loss on sale of boiler=Rs 4561;closing balance of machinery account= Rs 53144