1.

Following balances appear in the books of Priyank Brothers: ₹ 1st April, 2016 Machinery A/c 20,00,000 Provision for Depreciation A/c 8,00,000 On 1st April, 2016, they decide to sell a machine for ₹ 5,00,000. This machine was purchased for ₹ 7,50,000 on 1st April, 2013. Prepare the Machinery Account and Provisin for Depreciation Account for the year ended 31st March, 2017 assuming that the firm has been charging Depreciation 10% p.a. on the Straight Line Method.

Answer» Following balances appear in the books of Priyank Brothers:


















1st April, 2016 Machinery A/c 20,00,000
Provision for Depreciation A/c 8,00,000



On 1st April, 2016, they decide to sell a machine for ₹ 5,00,000. This machine was purchased for ₹ 7,50,000 on 1st April, 2013. Prepare the Machinery Account and Provisin for Depreciation Account for the year ended 31st March, 2017 assuming that the firm has been charging Depreciation 10% p.a. on the Straight Line Method.


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