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Following balances appear in the books of M/s. Amrit as on 1st April, 2018: ₹ 2018 1st April Machinery A/c 60,000 Provision for Depreciation A/c 36,000 On 1st April, 2018, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2014 for ₹ 16,000.You are required to prepare the Machinery Account, Provision for Depreciation Account and Machinery Disposal Account for the year ended 31st March, 2019. Depreciation was charged at 10% p.a on Cost following Straight Line Method.

Answer» Following balances appear in the books of M/s. Amrit as on 1st April, 2018:

























2018
1st April Machinery A/c 60,000
Provision for Depreciation A/c 36,000



On 1st April, 2018, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2014 for ₹ 16,000.

You are required to prepare the Machinery Account, Provision for Depreciation Account and Machinery Disposal Account for the year ended 31st March, 2019. Depreciation was charged at 10% p.a on Cost following Straight Line Method.


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