Question

purchased and
Prakash & Co. which depreciates its machinery at 10% per annum on Diminishing Balance Method had on 1st
April
, 2014 * 8,10,000 to the debit of Machinery Account. On 1st Oct., 2014 part of the machinery purchased on 1st
April, 2012 for * 75,000 was sold for * 42,000 and a new machinery at a cost of = 1,50,000 was
installed on the same date, Installation charges being + 8,000. It is decided to change its method of depreciation
from Diminishing Balance Method to Fixed Instalment Method with effect from 1st April, 2012 and adjust the
difference in the accounts for 2014-15. The rate of depreciation remain the same before.
Show the Machinery Account for the year 31-3-2015.
37.​

Answer 1

Answer:

April, 2012 for * 75,000 was sold for * 42,000 and a new machinery at a cost of = 1,50,000 wa