Question

on 1-1-2010 a machinery was purchased for 8000 it was sold on 30-6-2013 for 6000 depreciation is charged at 10% on original cost books are closed on 31st december every year prepare machinery account and depreciation account for the above period​

Answer 1

Answer:

2012-(june)2013To balance c/d 6400 By Depriciation 400 july 2013 To balance c/d 6000. since the depriciation will be charged on original cost it means it is straight line method i.e. 10% of 8000 annually since in 2013 depriciation is charged for only six months i.e. 8000*10%/2 = 400.