Q.21 X ltd purchased a machinery on 1/7 / 16 for Rs. 2,50,000. Another machine was purchased on 1/4 / 17 for Rs. 40,000. On 1/10 / 17 a new machine was purchased for Rs. 80, 000 and on the same day machinery purchased in 2016 was sold for 1, 80, 00 Prepare machinery account for the year 2016 2017 and 2018 if depreciation is charged @ 20% pa. by written down value method.
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Explanation:
Value method are as :
- 250000-40000=210000.
- 250000-80000=170000.
- Mean = 210000-170000=40000.
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