Aplant purchased on 1't October 2017 for (60,000 and sold on 01st Iruly 2020 for (15,000.
Depreciation charged at Straight Line Method basis @ 15% as on December 31, each year.
Find the profit or loss incurred to the firm on sale.
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ILLUSTRATION 5.
Birla Cotton Mills purchased a machinery on 1st August, 2015 for 90,000. On 1st
October2016 it purchased another machine for 40,000.
On 30th June, 2017 it sold off the first machine purchased in 2015 for 58,000 and
on the same date purchased a new machinery for 1,00,000. Depreciation is provided
20% p.a. on the original cost each year. Accounts are closed each year on 31st
March
Show the Machinery Account for three years. CGST and SGST are charged @ 6%
cach on purchase and sale of Machinery.
Explanation:
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