Question

Starship Ltd. Purchased a machinery for Rs.9,50,000 on 1st July 2015 and spent Rs.20,000 on its installation and Rs.30,000 on its transportation. It is to be depreciated @10%pa on written down value. If the accounts are closed on 31st march each year give journal entry on the date of purchase and machinery account till 31-03-2018.

Answer 1

machinery a/c dr. 1000000
to bank a/c 1000000