A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged 12% on purchase and sale of machine.

A Company purchased a second-hand machine on 1st April, 2016, for ₹

1.	A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged 12% on purchase and sale of machine.
Answer» A Company purchased a second-hand machine on 1st April, 2016, for ₹ 30,000 and immediately spent ₹ 4,000 on its repair and ₹ 1,000 on its installation. On Oct. 1, 2018, the machine was sold for ₹ 25,000. Prepare Machine Account after charging depreciation 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged 12% on purchase and sale of machine.