1.

The following balances appear in the books of Crystal Ltd, on Jan 01, 2015 Rs Machinery account on 15,00,000 Provision for depreciation account 5,50,000 On April 01, 2015 a machinery which was purchased on January 01, 2012 for Rs 2,00,000 was sold for Rs 75,000. A new machine was purchased on July 01, 2015 for Rs 6,00,000. Depreciation is provided on machinery at 20% p.a. on Straight line method and books are closed on December 31 every year. Prepare the machinery account and provision for depreciation account for the year ending December 31, 2015.

Answer»

The following balances appear in the books of Crystal Ltd, on Jan 01, 2015





















Rs



Machinery account on



15,00,000



Provision for depreciation account



5,50,000




On April 01, 2015 a machinery which was purchased on January 01, 2012 for Rs 2,00,000 was sold for Rs 75,000. A new machine was purchased on July 01, 2015 for Rs 6,00,000. Depreciation is provided on machinery at 20% p.a. on Straight line method and books are closed on December 31 every year. Prepare the machinery account and provision for depreciation account for the year ending December 31, 2015.




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