Question

Hii guyss.....
a company purchased machinery worth 400000 on 1st April 2020 accounting year of the company closed on 31st March every year it provides appreciation at the rate 10% per annum on fixed capital installation but pass the necessary journal entry for each year​

Answer 1

Answer:

Depreciation a/c _______________dr ₹ 40,000

To machinery a/c ₹ 40,000

(Being depreciation charged on machine @10% per annum)

Explanation:

Depreciation is a nominal account and showing a loss. so it is debit