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became obsolete and was sold for Rs.6800. Show how the machinery account would appear in the books of the company for all the 3 years under diminishing balance method. Depreciation is to be provided at 10% pa.

became obsolete and was sold for Rs.6800. Show how the machinery account would appear in the books of the company for all the 3 years under diminishing balance method. Depreciation is to be provided at 10% pa.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company whose accounting year is the calendar purchased on 1-1-93 a machine for Rs.40,000. It 12. purchased further machinery on 1st Oct 1993 for Rs.20,000 and on 1st July 1994 for Rs. 10,000. On 1-7-95 1/4th of the machinery installed on 1-1-93 became obsolete and was sold for Rs.6800. Show how the machinery account would appear in the books of the company for all the 3 years under diminishing balance method. Depreciation is to be provided at 10% pa.
Transcribed Image Text:A company whose accounting year is the calendar purchased on 1-1-93 a machine for Rs.40,000. It 12. purchased further machinery on 1st Oct 1993 for Rs.20,000 and on 1st July 1994 for Rs. 10,000. On 1-7-95 1/4th of the machinery installed on 1-1-93 became obsolete and was sold for Rs.6800. Show how the machinery account would appear in the books of the company for all the 3 years under diminishing balance method. Depreciation is to be provided at 10% pa.
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