Question

Question 4:
On 1st January, 1991, Plant and Machinery was purchased for Rs. 1,20,000. New machinery was
purchased on 1st July, 1991,for Rs. 50,000 and on 1st April,1992, for Rs. 25,000.
On 1st October, 1993, a machinery of the original value of Rs. 20,000 which was included in the
Machinery purchased on 1st January, 1991, was sold for Rs. 6,000. Prepare Plant & Machinery A/c from
1991 to 1993 after providing depreciation 10% p.a. Straight Line Method.
Answer: Loss on sale of machinery Rs. 8,500; Balance of Machinery A/c on 31st Dec., 1993, Rs.
1,28,125.
9.795​

Answer 1

Explanation:

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