profit or loss on sale of machinery. ( Answer : Profit on sale ` , , ) . On 1st April , Sudha and Company purchased machinery for ` , . To instal the machinery expenses incurred was ` , .
Depreciate machinery % p.a. under straight line method. On 30th June, the worn out machinery was sold for ` , . The books are closed on 31st December every year.
Show machinery account. ( Answer : Loss on sale ` , ) Accountancy . Ragul purchased machinery on April , for ` , , . On 1st October , a new machine costing ` , , was purchased.
On 30th September , the machinery purchased on April , was sold for ` , , . Books of accounts are closed on 31st March and depreciation is to be provided at % p.a. on straight line method. Prepare machinery account and depreciation account for the years - to - .
( Answer : Amount of depreciation: - : ` , ; - : ` , ; - : ` , ; Loss on sale of 1st machine: ` , ; Balance in machinery a/c: ` , , ). Written down value method . An asset is purchased for ` , . The rate of depreciation is % p.a.
Calculate the annual depreciation for the first two years under diminishing balance method. ( Answer : Amount of depreciation I year ` , ; II year ` , ) . A boiler was purchased on 1st January from abroad for ` , . Shipping and forwarding charges amounted to ` , .
Import duty ` , and expenses of installation amounted to ` , . Calculate depreciation for the first years @ % p.a. on diminishing balance method assuming that the accounts are closed 31st December each year. ( Answer : Amount of depreciation: : ` , ; : ` , ; : ` , ) .
A furniture costing ` , was purchased on . . , the installation charges being ` , . The furniture is to be depreciated @ % p.a.
on the diminishing balance method. Pass journal entries for the first two years. ( Answer : Amount of depreciation I year `