Agarwal Co. acquired a machine on 1st July 2013 at the cost of 14000 and spent 1000 on its installation the firm writes of depreciation at 10% of the original cost every at the books are closed on 31st December every year show the machinery account and depreciation account for the year 2013 and 14
Answers
Answered by
14
Dr. Machine account Cr.
cash 14000
installation 1000
c/d 15000
Not: installation is always the part of cost of the asset..
Dr. depreciation account 2013 Cr.
Machine 1500
(15000*10%)
c/d 1500
As depreciation is calculated on cost so every year same depreciation
will be charged until it is fully depreciated....
Similar questions