Question

Honest Ltd. purchased machinery worth Rs.60,000 on 1st April, 2014 and immediately spent
Rs.10,000 on its fixation and erection. On 1st January, 2016, additional machinery costing
Rs.25,000 was purchased.
Depreciation was provided for annually on 31st March at the rate of 10% p.a. on Reducing
Balance Method. You are required to prepare Machinery Account and Depreciation Account
for the period from 1st April, 2014 to 31st March, 2017.
Sunil Company, Mumbai purchased furniture on 1st April, 2016, for Rs.80,000. In the sam​

Answer 1

Answer:

Machinery a/c

1 April 2017 To Balance b/d - 72967

Depreciation A/c

31 March 2017. To machin a/c- 8108

31 March 2017. By statement of p/L a/c - 8108

Explanation: sunil co. Mumbai purchase furniture of rs.80,000 will be not come because we make machine a/c