Question

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13. A company purchased machinery costing Rs. 2,00,000 which included a Boiler costing
Rs.20,000. Depreciation has been written off the machinery account on reducing balance
method for the last 4 years at the rate of 10%. During the current year (fifth) the Boiler
became useless and was sold for Rs. 4,000. Write up machinery account for five years.
[Ans. Loss on sale Rs. 9,122, Balance of machine A/c Rs. 1,06,298-20)​

Answer 1

Answer:

A Company had bought machinery for Rs 2,00,000 including a boiler for Rs 20,000. The Machinery Account had been credited for Depreciation on the Reducing Instalment System for the past four years at the rate

During the fifth year, i.e., the present year, the boiler became usefless on account of damage to some of its vital parts and the damaged boiler is sold for Rs 4,000. Write up the Machinery Account.

Explanation:

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