Saved Bookmarks
| 1. |
A company has the following balances on 1st January, 2014: Machinery Account: Rs. 250000Provision for Depreciation Account: Rs. 120000Depreciation was provided @ 20% p.a. on original cost and accounts were closed on 31st December each year. On 30th September, 2014, a part of machinery bought for Rs. 100000 on 1st July, 2011 was sold at a profit of 20% and new machinery was purchased for Rs. 200000 on the same date. Prepare machinery account and provision for depreciation account for the year 2014 |
|
Answer» A company has the FOLLOWING balances on 1ST January, 2014: Machinery Account: Rs. 250000 Provision for Depreciation Account: Rs. 120000 Depreciation was provided @ 20% p.a. on original cost and ACCOUNTS were closed on 31ST December each year. On 30TH September, 2014, a part of machinery bought for Rs. 100000 on 1st July, 2011 was sold at a profit of 20% and new machinery was purchased for Rs. 200000 on the same date. Prepare machinery account and provision for depreciation account for the year 2014 |
|