A manufacturing firm purchased on 1st January, 2003, certain machinery for 1,00,000 and spent 2,000 on its estion. On 1st July in the same year additional machinery costing 50,000 was acquired. On 1st January, 2005, the machinery purchased on 1st January, 2003 (having become obsolete) was auctioned for ? 40,000 and on the same date machinery was purchased at a cost of 25,000.
Depreciation was provided annually on 31st December at 10 per cent per annum on the original cost of the asset. la 2005, however, this method was changed and that of writing off 15% on the written down value was adopted.
Give the Machinery Account as it would stand at the end of each year from 2003 to 2007 making your calculation
to the nearest rupee.
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Explanation:
[Loss on Sale of Machinery - Rs 75,750; Balance of Machinery A/c on 1st April, 2019 - Rs 2,67,500.]
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