A company whose accounting year is the calendar year purchased on 1st April,2001 machinery costing ₹30000 . It further purchased machinery on 1st October, 2001 cost ₹20000 and on 1st July 2002 costing ₹ 10000 . On 1 St January 2003 one third of the machinery which were installed on 1st April 2001 become obsolete and was sold for rs 3000 show how the machinery account would appear in the book of account. The depreciation is charge at 10% p.a. on written down value method.
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Answer:
Explanation:
In the books of Machinery A/C
date particulars amount date particulars amount
1/4/01 To bank A/C 30000 31/3/02 by depreciation
for 1st machine 3000
1/8/01 To bank A/C 20000 31/3/02 by depreciation
for 2nd machine 1000
31/3/02 by balance c/d 46000
50000 50000
1/4/02 to balance b/d 46000 31/3/04 by depreciation
for 1st machine 2475
to bank 10000
31/3/03 by depreciation
for 2nd machine 1900
31/3/03 by depreciation
for 3rd machinery 750
1/1/03 by bank 3000
by P/L (loss) 5325
31/3/03 by balance c/d 42550
56000 56000
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