On 1st April, 2013 a firm purchased a machinery for Rs. 1,00,000. ON 1st July, 2016 the machinery became obsolete and was sold fro Rs. 40,000. The firm charges depreciation on its machinery 10% per annum on written down value method. The books are closed on 31st March of every year. Prepare necessary ledger accounts assuming that provision for depreciation account is maintained.

On 1st April, 2013 a firm purchased a machinery for Rs. 1,00,000. ON 1

1.	On 1st April, 2013 a firm purchased a machinery for Rs. 1,00,000. ON 1st July, 2016 the machinery became obsolete and was sold fro Rs. 40,000. The firm charges depreciation on its machinery 10% per annum on written down value method. The books are closed on 31st March of every year. Prepare necessary ledger accounts assuming that provision for depreciation account is maintained.
Answer» On 1st April, 2013 a firm purchased a machinery for Rs. 1,00,000. ON 1st July, 2016 the machinery became obsolete and was sold fro Rs. 40,000. The firm charges depreciation on its machinery 10% per annum on written down value method. The books are closed on 31st March of every year. Prepare necessary ledger accounts assuming that provision for depreciation account is maintained.