Question

Q) X LTD Purchased machinery costing rs 170000 on jan 1,2016. and spent rs 15000 on cartage and rs 15000 on wages installation. the company charges depreciation at 10% pa on dec 31 every year. the machinery was sold on oct 1,2019 for rs 185000. prepare machinery account for four years assuming that
Case A
company charges depreciation according to fixed instalment method
Case B
company charges depreciation according to reducing balance/ diminishing balance ,method

Answer 1

Answer:

Purchase Price of machine = 20,00,000

Installation charges = 5,00,000

Total cost of machine = 25,00,000

Depreciation = 25,00,000*10/100

= 2,50,000.

Answered By

give me brilliant answers please follow me