On January 01, 2014, a Limited Company purchased machinery for Rs 20,00,000. Depreciation is provided 15% p.a. on diminishing balance method. On March 01, 2016, one fourth of machinery was damaged by fire and Rs 40,000 were received from the insurance company in full settlement. On September 01, 2016 another machinery was purchased by the company for Rs 15,00,000.Write up the machinery account from 2016 to 2017. Books are closed on December 31, every year.

On January 01, 2014, a Limited Company purchased machinery for Rs 20,0

1.	On January 01, 2014, a Limited Company purchased machinery for Rs 20,00,000. Depreciation is provided 15% p.a. on diminishing balance method. On March 01, 2016, one fourth of machinery was damaged by fire and Rs 40,000 were received from the insurance company in full settlement. On September 01, 2016 another machinery was purchased by the company for Rs 15,00,000.Write up the machinery account from 2016 to 2017. Books are closed on December 31, every year.
Answer» On January 01, 2014, a Limited Company purchased machinery for Rs 20,00,000. Depreciation is provided 15% p.a. on diminishing balance method. On March 01, 2016, one fourth of machinery was damaged by fire and Rs 40,000 were received from the insurance company in full settlement. On September 01, 2016 another machinery was purchased by the company for Rs 15,00,000. Write up the machinery account from 2016 to 2017. Books are closed on December 31, every year.