Question

A On 1.1.2008, Machinery was purchased for 80,000. On 1.7.2009 additions were made to the account of 40,000. On 31.3.2010, machinery purchased on 1.7.2009 costing 12,000 was sold for t 11,000 and on 30.6.2010 Machinery purchased on 1.1.2008, costing 32,000 was sold for 26,700. On 1.10.2010 additions were made to the amount of 20,000. Depreciation was provided at 10% p.a. on the Diminishing Balance Method. Show the Machinery Account for three years from 2008 to 2010 (Year ended 31st December)

Answer 1

machine which will be sold we can spit into two parts.

Answer 2

The machinery purchased can be bifercated into 2 parts

i.e.32000 and 48000