Saraswati Ltd purchased a machinery costing Rs 10,00,000 on January 1, 2001. A new machinery was purchased on 01, May 2002 for Rs 15,00,000 and another on July 1, 2004, for Rs 12,00,000. A part of the machinery which originally cost Rs 2,00,000 in 2001 was sold for Rs 75,000 on October 31, 2004. Show the Machinery account, Provision for depreciation account and Machinery disposal account for 2001 to 2005. If depreciation is provided at 10% per annum on original cost and account are closed on December 31st, every year.

Saraswati Ltd purchased a machinery costing Rs 10,00,000 on January 1,

1.	Saraswati Ltd purchased a machinery costing Rs 10,00,000 on January 1, 2001. A new machinery was purchased on 01, May 2002 for Rs 15,00,000 and another on July 1, 2004, for Rs 12,00,000. A part of the machinery which originally cost Rs 2,00,000 in 2001 was sold for Rs 75,000 on October 31, 2004. Show the Machinery account, Provision for depreciation account and Machinery disposal account for 2001 to 2005. If depreciation is provided at 10% per annum on original cost and account are closed on December 31st, every year.
Answer» Saraswati Ltd purchased a machinery costing Rs 10,00,000 on January 1, 2001. A new machinery was purchased on 01, May 2002 for Rs 15,00,000 and another on July 1, 2004, for Rs 12,00,000. A part of the machinery which originally cost Rs 2,00,000 in 2001 was sold for Rs 75,000 on October 31, 2004. Show the Machinery account, Provision for depreciation account and Machinery disposal account for 2001 to 2005. If depreciation is provided at $10 %$ per annum on original cost and account are closed on December 31st, every year.