Question

On 1.1.90 there was machinery worth rs 1,80,000 in a bussiness firm . On 30.6.1990 a machine was purchased for rs 20000 .on 31.12.1990,a machine was sold for rs 4200 which was purchased for rs 4000 on 1.1.90. On 31.12.91 a machine which was purchased on 1.1.90 for rs 12000 was sold for rs 8000. Depreciation is provided at 10/per annum on fixed instalment basis assuming that provision for depreciation a/c is not maintained prepare machinery a/c for 1990 and 91

Answer 1

Answer:

machinery account balance on 31.12.91 Rs.1,48,200; profit on sale of 1st machine Rs.600; loss on sale of 2nd machine Rs.1,600