Question

Machinery Account: Rs. 250000
Provision for Depreciation Account: Rs. 120000
Depreciation was provided @ 20% p.a. on original cost and accounts were closed on 31st December each year. On 30th September, 2014, a part of machinery bought for Rs. 100000 on 1st July, 2011 was sold at a profit of 20% and new machinery was purchased for Rs. 200000 on the same date. Prepare machinery account and provision for depreciation account for the year 2014.​

Answer 1

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