Question

Vardhan purchased a machine on 31st march 2017 for 70,000 depreciation is charged at 10% under original cost method after three years he found. That the machine was not suitable and sold for 55,000 show the machine a/c

Answer 1

Answer:

as it is profit you have write it in debit side...

first u have to find out total cost after depreciation and subtract it from the sold amount then u will find out profit or loss

55000-49000(after depreciation from 56000)=6000

profit=6000

Answer 2

Answer:  

Profit = Machine A/c Balance: 6,000)

Explanation:  

Depreciation is charged at 10% under original cost method. After three years he found that the Machine was not suitable and sold for 55,000. (Ans: Profit = Machine A/c Balance: 6,000)