Question

On 1st April, 2016, A Ltd. purchased a machine for * 2,40,000 and spent 10,000 on its installation. On
1st October, 2016, another machinery costing 1,00,000 was purchased. On 1st October, 2018 the machine
purchased on 1st April, 2016 was sold for 1,43,000 and on the same date, a new machine was purchased
at a cost of 2,00,000.
Show Machinery Account for the first four financial years after charging depreciation @ 5% pa. by the
Straight Line Method.​

Answer 1

Answer:

(Rs) 10,000 p.a

Explanation:

machine = 2,50,000x5/100 =Rs 12,500

machine =2,00,000x4/100=Rs 10,000 p.a