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Illustration: 15
Shree Lid purchased on Jan 1, 2004, certain machinery for R$ 97,000 and spent Rs 3,000 on its execution
purchased on Jan 1, 2004 was auctioned for Rs 50,000 and on the same date a new machinery was puz.
cost No depreciation need be charged during the year of sale of machinery for that part of the year when
the machine was used. In 2008, however, the company has changed the method of depreciation to WDY
Method 2 15 pa from the Straight Line Method. Show the machinery account for the period from
2004 to 2008
IB.com (Hons) - Modified
On July 1, 2004 additional machinery costing Rs 50,000 was purchased. On July 1, 2006, the machinery
chased to Of Rs 75.000 Depreciation was provided annually on Dec 31 a 10% pa on the ongina​

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