1.

Following balances appear in the books of Rama Bros: ₹ 1st April, 2015 Machinery A/c 80,000 Provision for Depreciation Ac 36,000 On 1st April, 2015, they decided to sell a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April, 2011. Prepare the Provision for Depreciation Account and Machinery Account on 31st March, 2016, assuming the firm has been charging Depreciation at 10% p.a. on Straight Line Method.

Answer» Following balances appear in the books of Rama Bros:


















1st April, 2015 Machinery A/c 80,000
Provision for Depreciation Ac 36,000



On 1st April, 2015, they decided to sell a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April, 2011. Prepare the Provision for Depreciation Account and Machinery Account on 31st March, 2016, assuming the firm has been charging Depreciation at 10% p.a. on Straight Line Method.


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