Question

M/S Gupta and company purchased machinery for rupees 320000 on 1st July 2010 and spent rupees 10000 towards carriage and installation of the machinery the estimated life of machinery is 10 years and its scrap value is estimated to be 30,000 rupees repair machinery account for first three years the company charged depreciation on original cost method and close the books on 31st December every year
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Answer 1

Answer:

Machinery a/c dr 320000

Carriage inward and installation a/c dr 10000

To cash a/c 330000

Explanation:

We didn't do dep. Enrty now,