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On July 1, 2016 Pushpak Ltd. purchased a machinery for ₹ 5,70,000 and paid ₹ 30,000 for its overhauling and installation. Depreciation is provided 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2019 for a sum of ₹ 1,60,000. You are required to show the Machinery Account and Provision for Depreciation Account for three years. |
| Answer» On July 1, 2016 Pushpak Ltd. purchased a machinery for ₹ 5,70,000 and paid ₹ 30,000 for its overhauling and installation. Depreciation is provided 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2019 for a sum of ₹ 1,60,000. You are required to show the Machinery Account and Provision for Depreciation Account for three years. | |