Question

Depreciation
Problems on Diminishing Balance Method . . .
11. Madhu and Co purchased a Machine on 1st April 2017 for 20,000. Depreciation is charged
at 10% under dimishing balance method. The company prepares accounts at the end of the
financial year. Prepare Machine a/c for three years.
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Answer 1

Answer:

depreciation will be charged at 10% on the machinery which will be 2000 and for three years depreciation will be 6000 . the balancing amount of the machine will be 14000. which will be returned on the the debit side of the machinery account