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A company whose accounting year is the calendar year, purchased on 1st April, 2014 machinery costing Rs. 30,000. On 1st June, 2016 one third of the machinery which was installed on 1st April, 2014 became obsolete and was sold for Rs. 3,000. Show how the machine account would appear in the books of the company, it being given that machinery was depreciated by fixed installment at 10% per annum. |
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Answer» A company whose accounting year is the calendar year, purchased on 1st April, 2014 machinery costing Rs. 30,000. On 1st June, 2016 one third of the machinery which was installed on 1st April, 2014 became obsolete and was sold for Rs. 3,000. Show how the machine account would appear in the books of the company, it being given that machinery was depreciated by fixed installment at 10% per annum. |
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