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Good Manufacturer Ltd. acquired a machine on 1st July 2011, at a costof ₹ 25000 and spent ₹1000 on its installation. The firm writes off depreciation at 10% of the original cost every year. Show the machinery account for three years. The books are closed on 31st December. |
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Answer» Answer: Balance as on 31.12.2013 ₹ 19,500 Explanation: Depreciation in FIRST YEAR ₹1300 Value as on 31.12.2011 ₹24,700 Depreciation in SECOND Year ₹2600 Value as on 31.12.2012 ₹22,100 Depreciation in THIRD Year ₹2600 Value as on 31.12.2013 ₹ 19,500 |
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