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On 1st April, 2015, Star Ltd. purchased 5 machines for ₹ 60,000 each. On 1st April, 2017, one of the machine was sold at a loss of ₹ 8,000. On 1st July, 2018, second machine was sold at a loss of ₹ 12,500. A new machine was purchased for ₹ 1,00,000 on 1st October, 2018.Prepare Machinery Account for 4 years, assuming accounts are closed on 31st March each year and depreciation is charged 10% per annum as per Straight Line Method.

Answer» On 1st April, 2015, Star Ltd. purchased 5 machines for ₹ 60,000 each. On 1st April, 2017, one of the machine was sold at a loss of ₹ 8,000. On 1st July, 2018, second machine was sold at a loss of ₹ 12,500. A new machine was purchased for ₹ 1,00,000 on 1st October, 2018.

Prepare Machinery Account for 4 years, assuming accounts are closed on 31st March each year and depreciation is charged 10% per annum as per Straight Line Method.


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