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The following balances appear in the books of M/s Amrit: ₹ 1st April, 2018 Machinery A/c 60,000 1st April, 2018 Provision for depreciation A/c 36,000 On 1st April, 2018, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2014 for ₹ 16,000.You are required to prepare Machinery A/c, Provision for Depreciation A/c and Machinery Disposal A/c for 2018-19. Depreciation was charged at 10% p.a on original cost method. |
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Answer» The following balances appear in the books of M/s Amrit:
On 1st April, 2018, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2014 for ₹ 16,000. You are required to prepare Machinery A/c, Provision for Depreciation A/c and Machinery Disposal A/c for 2018-19. Depreciation was charged at 10% p.a on original cost method. |
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