Question

On 1st April2020 balances appeared in the books of Ram&Sons.
Machinery Rs.7,00,000
Provision for depreciation Rs.3,00,000
On 1st July 2020 a machinery which had cost Rs.50,000 on July12018 was sold
for Rs.43,000. On the same date new machinery purchased for Rs.20,000. Show
Machinery account, machinery disposal account and provision for depreciation
if depreciation is charged @10% p.a. on straight line method.​

Answer 1

2 (C): Classify the Accounts into Assets, Liabilities, Income, Expenditure and Capital (3M)

(1) Goods A/C

(2) Wages A/C

(3) Loan A/C

(4) Debtors A/C

(5) Creditors A/C

(6) Furniture A/C

(7) Bills Receivable A/C (8) Meena's Capital A/c (9) Drawing A/C

(10) Discount A/C

(11) Rent Received A/c (12) Building A/C

CANAi