Accountancy, asked by amitshaw8981, 1 year ago

On April 1st 2016 your company purchased an asset at a cost of 7 lacs and incurred Rs50000 on installation. The machinery being depreciated on WDV method every year. On March 31st 2019, the machinery was sold for Rs4.5 lacs.
a) Pass relevant journal entries to recognize the profit or loss and sale of asset
b) Calculate the profit or loss on disposal, Calculate Closing book value and depreciation for the years 2016-19

Answers

Answered by lodhiyal16
0

Please mention the percentage of depreciation  or estimated life of the asset.

The depreciation is charged on the basis of fixed percentage rate on reducing balance.

Rate of depreciation (R) = [ 1- n√s/c ] 100

Where,

n= useful life of asset

S= scrap value

C = cost of asset

I will explained you with a example

For example the value of asset  is 100000

cost                                                     WDV

(-) depreciation of 1 year @ 10 %        10000

Dep of 2 year ( 90000)                       9000

Dep of 3 year (81000)                         8100

So, this is the way by you can find out depreciation.

Answered by Sidyandex
1

Answer:

The profit can be calculated due to certain solution and it used to keep account to the beneficiary.

Therefore, one could able to identify with better outcomes and firm purchased rs.50000 on April 1st 1998. It usually takes place in machinery and being depreciated in incurred for installation.

So, it used to help original cost less and pass necessary journal entries for 5 years.

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