1.

Kamal Bros purchased a machine on 1st April 2012 at a cost Rs. 16,000 spent Rs. 4,000 on its installation. The firm writes off depreciation 10% per annum by written value method. The scrap value of the machine at the end of its economic life of 4 years is expected to be Rs. 13,122. Show the machine account, depreciation account and provision for depreciation account for 4 years in books Kamal Bros. The book is closed on 31st March every year.

Answer»

Kamal Bros purchased a machine on 1st April 2012 at a cost Rs. 16,000 spent Rs. 4,000 on its installation. The firm writes off depreciation 10% per annum by written value method. The scrap value of the machine at the end of its economic life of 4 years is expected to be Rs. 13,122.

Show the machine account, depreciation account and provision for depreciation account for 4 years in books Kamal Bros. The book is closed on 31st March every year.



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