ABC Ltd. has machinery written down value of which on 1st april,2018 was Rs.8,60,000 and on 31st march,2019 was Rs.9,50,000. Depreciation for the year was Rs.40,000. In the beginning of the year, a part of machinery was sold for Rs.25,000 which had a written down value of Rs.20,000. Calculate the amount of purchase of Machinery.
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Given:
WDV as on 01.04.2018 = 8,60,000
WDV as on 31.03.2019 = 9,50,000
Depreciation = 40,000
Amt. of Machinery sold = 25,000
WDV of Machinery sold = 20,000
To find:
Amount of purchase of Machinery
Solution:
Amt. of purchase of Machinery = (WDV as on 31.03.2019 - WDV as on 01.04.2018) + Depreciation + WDV of Machinery sold
Amt. of purchase of Machinery = (9,50,000 - 8,60,000) + 40,000 + 20,000
Amt. of purchase of Machinery = 90,000 + 60,000
Amt. of purchase of Machinery = 1,50,000
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