On 1st January, 2013 A Ltd, company purchased machinery for Rs. 20,00,000. Depreciation is provided at15% per annum on diminishing balance method. On 1st March, 2015 14 of machinery was damaged by fire and Rs. 40,000 machinery were received from the insurance company in full settlement. On 1st September, 2015 another machinery was purchased by the company for Rs.15,00,000. Write up the machinery account from 2015 to 2016. Books are closed on 31st December, every year.

On 1st January, 2013 A Ltd, company purchased machinery for Rs. 20,00,

1.	On 1st January, 2013 A Ltd, company purchased machinery for Rs. 20,00,000. Depreciation is provided at15% per annum on diminishing balance method. On 1st March, 2015 14 of machinery was damaged by fire and Rs. 40,000 machinery were received from the insurance company in full settlement. On 1st September, 2015 another machinery was purchased by the company for Rs.15,00,000. Write up the machinery account from 2015 to 2016. Books are closed on 31st December, every year.
Answer» On 1st January, 2013 A Ltd, company purchased machinery for Rs. 20,00,000. Depreciation is provided at15% per annum on diminishing balance method. On 1st March, 2015 $\frac{1}{4}$ of machinery was damaged by fire and Rs. 40,000 machinery were received from the insurance company in full settlement. On 1st September, 2015 another machinery was purchased by the company for Rs.15,00,000. Write up the machinery account from 2015 to 2016. Books are closed on 31st December, every year.