Question

on machinery was purchesd for 8000 it was sold on30-6-2013 For 6000 deprecation is charged at 10% onoriginal Cost books are closed on 31st December every year peepare machinery account and deprecation account for the above period

Answer 1

journal entry for it
machinery a/c 8000
to cash a/c 8000
depreciation a/c 400
to machinery a/c 400
cash a/c 6000
loss on sale of machinery 1600
to machinery a/c 7600