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The following balances appear in the books of Crystal Ltd on January 1, 2005 Items(Rs)Machinery account on15,00,000Provision for depreciation account 5,50,000 On April 1, 2005, a machinery which was purchased on January 1, 2002 for Rs 2,00,000 was sold for Rs 75,000. A new machine was purchased on July 1, 2005 for Rs 6,00,000. Depreciation is provided on machinery at 20% per annum on straight line method and books are closed on December 31st every year. Prepare the Machinery account and Provision for depreciation account for the year ending December 31, 2005. |
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Answer» The following balances appear in the books of Crystal Ltd on January 1, 2005 Items(Rs)Machinery account on15,00,000Provision for depreciation account 5,50,000 On April 1, 2005, a machinery which was purchased on January 1, 2002 for Rs 2,00,000 was sold for Rs 75,000. A new machine was purchased on July 1, 2005 for Rs 6,00,000. Depreciation is provided on machinery at 20% per annum on straight line method and books are closed on December 31st every year. Prepare the Machinery account and Provision for depreciation account for the year ending December 31, 2005. |
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