Question

maheshwari steel company purchased a machinery on 1st jan 2000 for RS20,000.on1stjan.2001 a second machinery was purchased for Rs,8,000and Rs400 were spend on its erection. the third and fourth machin were purchased on 1st july ,2002 for Rs 6,000 and on 31st march 2003 for Rs 10,000 prepare machinery acc for 4year by using fixed installation method for providing depreciation @ 5%per annum

Answer 1

So here depreciation is to be provided at 5% on Fixed Base Capital Method, i.e we need to calculate 5% on the purchase value and provide same depreciation every year, for 4 years. So depreciation will be as follow:

1/1/2000-->Machine1-->

RS. 1000(20000*5/10)

1/1/2001-->Machine2-->

RS. 420(8000+400*5/10)

/1/2000-->Machine3-->

RS. 300(6000*5/10)

/1/2000-->Machine4-->

RS. 500(10000*5/10)

Now provide this depreciation for next 4 years from the date of purchase. This will be done as follow:

Machine 1 --> Till date 1/1/2004

Machine 2 --> Till date 1/1/2005

Machine 3 --> Till date 1/7/2006

Machine 1 --> Till date 31/3/2007

Answer 2

Explanation:

can you give me the machinery ac