Question

M/S Subhash and company purchased machinery on 1st april ,2015 for rs 150000.additional machinery was purchased on 30th september 2015 for rs 20000. On 31st march 2018 the Machinery purchased was on 30th september ,2015 became obsolete and was sold for rs 12000.The company provides depreciation @20% p.a. on reducing balance method on 31st march every year prepare machinary account and depreciation account for 3 years ending 31st march 2018

Answer 1

Answer:

1. Machinery is a Real A/c

2. It's balance will be debit

3. Depreciation is a Nominal account

4. It's balance will be dabited in profit and loss account

5. Accounting standard 10 is applicable

Explanation: