Question

A machine costing Rs.400000 was purchased on 1.1.2016 . The rate of depriciat is 10% on diminishing balance method. A machine costing Rs. 100000was sold 31.3.2018 for Rs. The first three years

Answer 1

Explanation:

cost of machine 400000

less: dep @10% 40000

macine as on 31.12 360000

machine in 1.1.1.17 360000

less dep@ 10% 36000

machine as on 31.12 224000

machine as on 1.1.18 224000

less dep @10% 22400

machine as on 31.12 201600

sale 100000

profit 101600

the questions is not very clear. so to my understanding o did it