DIE NIC HD (T-100.
Q1. Suresh bought a plant on 1s! January 2014 for the sum of Rs. 1,00,000 having a useful lile
of 5 years. It is estimated that the plant will have a scrap value of Rs. 16,000 at the end of
its useful life. Suresh decides to charge depreciation according to the depreciation fland
method. The depreciation fund investment are expected to eam an interest @5% p.a. I he
sinking fund table shows that Re. 0.180975 if invested yearly at 5% p.a. produces Re. I a
the end of 5 years. The investment are sold at the end of the 5th year for a sum of Rs.
65,000. A new plant was purchased for Rs. 1,20,000 on 1.1.2019. The scrap value of the
old plant realizes Rs.17,000.
Prepare Lease Account, Depreciation Fund and Depreciation Fund Investment Accounts
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