Question

If the balance of Machinery Account at cost on 31-3-2011 was
Rs. 8.00.000 and on 31-3-2012 Rs. 9.00,000 and other details are the
same as above, what is the amount of purchase of Machinery during the
year?
(A) Rs. 1.40.000
(C) Rs. 1.80,000
(B) Rs. 2,00,000
(D) No purchase.​

Answer 1

Answer

It should be 1,00,000 but there is no correct option.

Explanation:

We consider the financial year from 1 April to 31 March and on 31/3/11 the cost of machinery is 8,00,000 that means the closing balance..and this balance become the balance b/d for next financial year that is 1 April 2011 to 31 March 2012 and in 31 march 2012 that is after 1 year machinery cost is 9,00,000 which indicates that the business have purchased the new machinery of rs. 1,00,000 during the year