Question

Prepare a double coloumn cash book from the following in the books of mahesh traders : a ltd ., purchased on 1.10.15 a machinery for rs .3000 and on 1.01.16 another machinery was purchased for rs 200,000 .on 1.04.17 the machinery was purchased on 1.10.15 was sold for 180,000.on 1.10.17 another machinery was purchased for 4,80,000.prepare machinery account for the three years assuming that depriciation is provided at 10percent p.a. fixed cost method

Answer 1

Explanation:

Modern Ltd. Purchased a machinery on 1st August, 2016 for Rs 60,000. On 1st October, 2017, it purchased another machine for Rs 20,000 plus CGST and SGST

each. On 30th June, 2018, it sold the first machine purchased in 2016 for Rs 38,500 charging IGST

. Depreciation is provided

p.a. on the original cost each year. Account are closed on 31st March every year. Prepare the Machinery Account for these years.