Messrs, Sarojini Balu & Co., purchased a machine for Rs.22,000 on January
1,1992. The estimated life of the machinery is 10 years, after which it’s break up
value will be Rs.2,000. Depreciation has to be charged at 21% on the diminishing
balance. There was an addition to the original plant on January 1, 1994 to the
value of Rs.4,000.
You are required to prepare machinery A/c for the first three years.
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