A company whose accounting year is a financial year, purchased on 1st July, 2020 machinery costing ₹ 30,000
A company whose accounting year is a financial year, purchased on 1st July, 2020 machinery costing ₹ 30,000.
It purchased further machinery on 1st January, 2021 costing ₹ 20,000 and on 1st October, 2021 costing ₹ 10,000.
On 1st April, 2022, one-third of the machinery installed on 1st July, 2020 became obsolete and was sold for ₹ 3,000.
Show how Machinery Account would appear in the books of the company. It being given that machinery was depreciated by Fixed Instalment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2023?
[Depreciation on 31st March,: 2021 – ₹ 2,750; 2022 – ₹ 5,500; and 2023 – ₹ 5,000; Loss on Sale of Machinery – ₹ 5,250; on 1st April, 2023: Balance ₹ 38,500, i.e., in Machinery I (2/3) – ₹ 14,500; Machinery II – ₹ 15,500 and Machinery III – ₹ 8,500.]
Anurag Pathak Changed status to publish September 27, 2023
