Question

On 1st april,2016 vaishnavi & sisters purchased two machines of ₹60000 each. on 31st march,2017 one machine was sold for ₹50000 and another machine was purchased on 1st october 2016 was sold for ₹45000 prepare machinery account for 2016-17, 2017-18 and 2018-18 . accounts are closed on 31st march every year.

Answer 1

case (1) is when difference of cost and sale price as loss on sale.......and

case (2) is when difference of cost and sale price as depreciation on machinery.