Chandra Ltd. purchased a second-hand machine for ₹ 8,000 plus CGST and SGST 6% each on 1st July, 2015. They spent ₹ 3,500 on its overhaul and installation.Depreciation is written off 10% p.a. on the original cost. On 30th September, 2018, the machine was found to be unsuitable and sold for ₹ 6,500. Prepare the Machinery A/c for four years assuming that accounts are closed on 31st March.

Chandra Ltd. purchased a second-hand machine for ₹ 8,000 plus CGST a

1.	Chandra Ltd. purchased a second-hand machine for ₹ 8,000 plus CGST and SGST 6% each on 1st July, 2015. They spent ₹ 3,500 on its overhaul and installation.Depreciation is written off 10% p.a. on the original cost. On 30th September, 2018, the machine was found to be unsuitable and sold for ₹ 6,500. Prepare the Machinery A/c for four years assuming that accounts are closed on 31st March.
Answer» Chandra Ltd. purchased a second-hand machine for ₹ 8,000 plus CGST and SGST 6% each on 1st July, 2015. They spent ₹ 3,500 on its overhaul and installation. Depreciation is written off 10% p.a. on the original cost. On 30th September, 2018, the machine was found to be unsuitable and sold for ₹ 6,500. Prepare the Machinery A/c for four years assuming that accounts are closed on 31st March.