Question

Supriya Limited purchased a Machinery for Rs 5,00,000 on 1st

April 2018. Depreciation is

provided @ 20% p.a. on original cost of the Machinery every year. On 1st January 2020, the

Machinery got an accident and damaged badly. The company disposed off it for Rs 1,00,000.
On the same date a new Machinery at a cost of Rs 9,00,000 was purchased. Prepare

Machinery Account for four years. The accounts are closed on 31st March every year.​

Answer 1

Answer:

Please see the attached file.

Answer 2

Explanation:

Bal c/d on last 5,40,000