Question

IN A TRAIL BALANCE GIVEN
PLANAT AND MACHINERY
1-1-2018 @20000
AND
1-7-2018 @5000

NOW , WHAT AND WERE WE SHOULD WRITE IN FINANCIAL ACCOUNT ?

WHAT WILL BE ENTRIES FOR THIS IN FINANCIAL ACCOUNT?​

Answer 1

Answer:

Sale transaction.

Explanation:

After providing depreciation

• its book value is rs.20,000. on 1/1/2018
• on 1/7/2018 its book value is rs.5000.

There must be a sale of plant and machinery..

journal entry

cash or bank a/c Dr. 15000

to plant and machine a/c 15000

Effects

• increase cash balance by rs.15000
• decrease plant& machine a/c by rs.15000.