Question

mehta agency purchased a machine on 1st April 2003 for rs. 1000000.machine is depreciated @20% on WDV method. on 30 june2005 1/4 of machine was found unsuitable and disposed off for rs. 135000.on the same day a new machine costing rs. 150000 was purchased. write up the machinery account in the books of mehta agency up to 31st December, 2005. the accounts are closed on 31st December each year

Answer 1

Explanation:

Revaluation account is an account prepared to ascertain the variation in the values of the assets and liabilities of the firm. Realisation account is an account prepared to ascertain the net profit or loss on the sale of assets or discharge of liabilities.

Answer 2

Mehta agency purchased