Question

A machine is purchased by Teera Ltd on 01st of June 2013 for Rs. 800,000 which has effective life time of 08 years. Company decided to dispose this machinery on 01st of August 2017 for Rs. 500,000.
Additional information
Cost of the total machinery as at 01st of January 2017 isRs, 5.5 mn and accumulated depreciation on the same date for machinery was Rs. 2.5 mn.
Depreciation policy of the company is to depreciate machinery at 10% p.a on cost.
Company’s financial year ends at 31st December each year.
Requirement as at 31st December 2017:
Machinery account at cost
Depreciation account for machinery
Provision for depreciation account
Machinery Disposal account

Answer 1

HEYA MATE YOUR ANSWER IS

on the same date for machinery was Rs. 2.5 mn.

Depreciation policy of the company is to depreciate machinery at 10% p.a on cost.

Company’s financial year ends at 31st December each

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