1.

“Vinod” Engineering Works purchased a machine on 1st April 2001 for Rs.1,80,000 and spent Rs.20,000 on its installation. On 1st January 2002, it purchased another machine for Rs.2,40,000. On 1st July 2003, the machine purchased on 1st April, 2001 was sold for Rs.1,45,000. On 1st October, 2003 another machine was purchased for Rs.4,00,000. Prepare Machinery Account from 2001 to 2003 after charging depreciation 10% p.a. by diminishing balance method. Accounts are closed on 31st December every year.

Answer»

“Vinod” Engineering Works purchased a machine on 1st April 2001 for Rs.1,80,000 and spent Rs.20,000 on its installation.

On 1st January 2002, it purchased another machine for Rs.2,40,000. On 1st July 2003, the machine purchased on 1st April, 2001 was sold for Rs.1,45,000. On 1st October, 2003 another machine was purchased for Rs.4,00,000.

Prepare Machinery Account from 2001 to 2003 after charging depreciation 10% p.a. by diminishing balance method. Accounts are closed on 31st December every year.



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