Question

Illustration 3: Sharada & Sons acquired a machine for 5,00,000
250,000 for its installation. The scrap value of the plant after its useful
Prepare Machine a/c, Depreciation a/c for the first four years assuming
under straight line method. Accounts are closed every year on 31st Man
Solution
Cost
*5,00,000 + 50,000
= 5,50,000
Annual depreciation
5,50,000 - 10,000 5,40,000
-=854
10
10​

Answer 1

Answer:

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Explanation:

(incomplete question)

here are the formulas:

annual depreciation = (Cost + installation charges - scrap value) ÷ number of years