Escorts Ltd. bought 5 machines costing 60,000 each on 1st January, 2016. It was decided to depreciate the machines @ 10% p.a. on original cost method. On 1st April, 2018, one machine was sold for 30,000 and again on 30th September 2019; one machine was sold for 20,000. A new machine was bought on 1st October, 2019 for ₹ 80,000. Prepare Machinery A/c and Provision for Depreciation A/c for 4 assuming books are closed on 31st, December each year. years [Ans. Loss on sale (2018) 16,500; Provision for Depreciation 13,500 and Loss on sale (2019) 17,500; Provision for Depreciation 22,500; Balance Machinery 2,60,000 and Balance of Provision for Depreciation A/c *74,000] U 100
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X Ltd bought a machine on 1st April 2017 For 4 lakh on 1st June 2019 a part of machinery costing 120 lakh on 1st April 2017 was sold for 60000 on 1st July 2019 in new machine was purchased for 150 lakh
It was decided to depreciate the machine 20% on written down value method assuming that books of accounts are closed on 31st December each year .prepare machinery account provision for depreciation account and machinery disposal account
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