Question

Good Manufacturer Ltd. acquired a machine on 1st July 2011, at a cost

of ₹ 25000 and spent ₹1000 on its installation. The firm writes off depreciation

at 10% of the original cost every year. Show the machinery account for three

years. The books are closed on 31st December.​

Answer 1

Answer:

Balance as on 31.12.2013 ₹ 19,500

Explanation:

Depreciation in First year ₹1300

Value as on 31.12.2011 ₹24,700

Depreciation in Second Year ₹2600

Value as on 31.12.2012 ₹22,100

Depreciation in Third Year ₹2600

Value as on 31.12.2013 ₹ 19,500