Question

Q.1 A company has the following balances on 1st January, 2018 :
Machinery Account ₹ 2,50,000

Provision for Depreciation Account ₹ 1,20,000



Depreciation was provided @ 20 % p.a. on original cost and accounts are closed on 31st December each year. On 30th September, 2018, a part of machinery bought for ₹ 1,00,000 on 1st July, 2015 was sold at a profit of 20 % and a new machinery was purchased for ₹ 2,00,000 on the same date. Prepare Machinery Account and Provision for Depreciation Account for the year 2018.​

Answer 1

Answer:

40000 is the correct answer