Question

Ashoka Ltd. bought a machine on 1st january, 2008 for Rs. 2,40,000 and spent Rs.4,000 on its carriage and Rs.6,000 towards installation cost . On 1st April, 2009 it purchased a second hand machinery for Rs. 75,000 and spend Rs.25,000 on its overhauling . On 1st October , 2010 it decided to sell the machinery bought on 1st January, 2008 at a loss of Rs.20,000 . It bought another machine on the same date for Rs. 40,000 . Company decided to change depreciation @15% p.a. on written down value method . Prepare machinery account for 3 years

Answer 1

heya mate!!!

first year machinery 10,000 rupess

second year machinery 11000 rupess

third year machinery 22,000 rupees

hope it helps u