Question

A sale of machine in credit to Mr.Mehta for 9000 was not entered in the books at all. The book value of machine was 7500 .The firm has the practice of writing off depreciation @10% on the balance at the end of the year
Pass journal entry to rectify the error​

Answer 1

Answer:

Mehta's A/C Dr 9,000

To Machine A/C 7,500

To Profit on Sale A/C 1,500

Explanation:

for providing depreciation or getting wdv, date of sale for asset sold and date of purchase for asset purchased, should be known..