Question

A company purchased plant machinery on October
1,2015 Rs. 80,000 it was
decided to impose depreciation at 20% annualized rate on the basis of the value system . create plant and machinery accounts for the years ended March 31, 2016 and 2017.​

Answer 1

Answer:

1.10.2015 Machine A/c Dr. 80,000

                    To Bank A/c 80,000

31.03.2016 Depreciation A/c Dr. 8,000

                      To Machine A/c 8,000

31.03.2016 Depreciation A/c Dr. 16,000

                      To Machine A/c 16,000

Explanation: