Question: On Ist Jan. 1997, Y Ltd. purchased a machinery for Rs. 15, 00,000. On Ist July 1999, a part of the machinery purchased on Ist Jan. 1997 for Rs. 70,000 was sold for Rs. 55,000 and a new machinery at a cost of Rs. I, 58,000 was purchased and installed on the same date. The company has adopted the method of providing 10% p.a. depreciation on the original cost of the machinery. Required: Show the necessary leader accounts assuming that (a) Provision for Depreciation Account is not maintained, (b) Provision for Depreciation Account is maintained.

Question: On Ist Jan. 1997, Y Ltd. purchased a machinery for Rs. 15, 00,000. On Ist July 1999, a part of the machinery purchased on Ist Jan. 1997 for Rs. 70,000 was sold for Rs. 55,000 and a new machinery at a cost of Rs. I, 58,000 was purchased and installed on the same date. The company has adopted the method of providing 10% p.a. depreciation on the original cost of the machinery. Required: Show the necessary leader accounts assuming that (a) Provision for Depreciation Account is not maintained, (b) Provision for Depreciation Account is maintained.

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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