Question

On January 1, 2015 machinery account showed a balance of Rs.20,000. On 1st July 2016, a new

machine costing of Rs.12,000 was purchased. On 30th June 2017, a machinery whose book value on

1.1.2015 was Rs.20,000 sold for Rs.12,000 Depreciation is provided at 10% per annum on diminishing balance method. The accounts are

closed 31st December each year. Prepare machinery account for Three Years.​

Answer 1

Answer:

3600 is the answer

Explanation:

because 12000 rp is the machine cost per year it earns 1200 and 1200 ×3=3600