Question

Following balances exist in the books of Rama Bros.:
₹
1st April, 2019 Machinery Account
80,000
Provision for Depreciation Account
36,000
On 1st April, 2019, they sold a machine for 8,700. This machine was purchased for 16,000 in April, 2015.
You are required to prepare Provision for Depreciation Account and Machinery Account on 31st
March,
2020, the depreciation being charged @ 10% p.a. by Straight Line Method.

Answer 1

Answer:

Machinery Account and Depreciation Account is prepared.

1) Value of Depreciation in the year 2019-20 - 16133

2) Value of Machinery A/c as on 01-04-2020- 55167

Explanation:

Depreciation at the is transferred to profit & loss account.