Question

Q.A The books of Siya Ltd. showed a balance of Rs. 1,80,000 in Machinery A/c on 1.4.15. This machinery was
purchased before 7 years. This machinery was sold off on 01.10.15 at 30% profit on its book value. One
the same date another machinery was purchased for Rs. 2,00,000 plus IGST @ 12%. On 01.01.2016
another machinery was purchased for Rs. 50,000 plus IGST @ 12%. On 1.07.17, 1/4th of machinery which
was purchased on 01.10.15 was sold for Rs. 40,000. Company charges depreciation @ 10% p.a. on all
machines according to straight line method. Prepare Machinery Account from 01.04.15 to 31.03.18. Books
are closed on 31st March every year and company provides depreciation @ 10% p.a. on straight line
method.
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Answer 1

Answer:

This machinery was sold off on 01.10.15 at 30% profit on its book value. One

the same date another machinery was purchased for Rs. 2,00,000 plus IGST @ 12%. On 01.01.2016

another machinery was purchased for Rs. 50,000 plus IGST @ 12%. On 1.07.17, 1/4th of machinery which

was purchased on 01.10.15 was sold for Rs. 40,000. Company charges depreciation @ 10% p.a. on all

machines according to straight line method. Prepare Machinery Account from 01.04.15 to 31.03.18. Books