the opening balance of on 1* October 2016 for = Bank and the remaining mased for R 5,00,000 om f the said machinery w

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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osed on March 31 every year.
Q3.
In the books of M/s Anthony Enterprises, the opening balance of Machinery account on 1 April 2016 was
15,00,000 and the opening balance of Provision for Depreciation account was R 3,50,000. A machinery
was purcha sed on 1* October 2016 for R 20,00,000, which was financed to the extent of 50 % by way or
loan from Union Bank and the remaining amount was paid through cheque. On 01.06.2017 one machinery
which was purchased for R 5,00,000 on 01.04.2015 was completely destroyed by fire and scrap value
realized by sale of the said machinery was 10,000. To replace that machinery, additional machine was
purchased on the same date for 7,00,000. Company charges depreciation @ 15% p.a. on SLM basis and.
naintain Provision for Depreciation account. Accounts are closed every year on 31 March.
repare Machinery account & Provision for depreciation account for the year 2016-17 and 2017-18.
7400 000x 15/100 x 3/12)
By Balance cid
38500ereciation
671250 e as orn A
tofr on Sale af
Transcribed Image Text:osed on March 31 every year. Q3. In the books of M/s Anthony Enterprises, the opening balance of Machinery account on 1 April 2016 was 15,00,000 and the opening balance of Provision for Depreciation account was R 3,50,000. A machinery was purcha sed on 1* October 2016 for R 20,00,000, which was financed to the extent of 50 % by way or loan from Union Bank and the remaining amount was paid through cheque. On 01.06.2017 one machinery which was purchased for R 5,00,000 on 01.04.2015 was completely destroyed by fire and scrap value realized by sale of the said machinery was 10,000. To replace that machinery, additional machine was purchased on the same date for 7,00,000. Company charges depreciation @ 15% p.a. on SLM basis and. naintain Provision for Depreciation account. Accounts are closed every year on 31 March. repare Machinery account & Provision for depreciation account for the year 2016-17 and 2017-18. 7400 000x 15/100 x 3/12) By Balance cid 38500ereciation 671250 e as orn A tofr on Sale af
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