Question

sahani traders acquired a printing machine for 90000 on 1st January 2008 and depreciation is provided at 10% p. a. on straight line method. on 1st October 2010 the machine was sold for 45000.Accounts are closed on 31st December every year. Prepare machinery account

Answer 1

                    calculation of depre

1) cost of the machinery as on 1st jan 2008           90000

  depre @ the end of the year                                 9000

   book value at the end of the year                       81000

2) cost of the machinery as on 1st jan 2009            81000

   depre @ the end of the year                                    8100

   book value at the end of the year                         72900

3) cost of the machinery as on 1st jan 201O             72900

depre on 1st oct 2010                                                   6075

book value on sale of mach                          66825