Bhushan & Company purchased a Machinery on 1st January, 2007, for Rs. 54,000 and spent Rs. 6,000

Question:

Bhushan & Company purchased a Machinery on 1st January, 2007, for Rs. 54,000 and spent Rs. 6,000 on its installation. On 1st September, 2008, it purchased another machine for Rs. 30,000.

On 31st March, 2009, the first machine purchased on 1st January, 2007, is sold for Rs.

36,000 and on the same date it purchased a new machinery for Rs. 80,000.

On September 1, 2010, the second Machine (purchased on September 1, 1991) was also sold off for Rs. 26,000.

Depreciation was provided on Machinery @ 10% per annum on Original Cost Method annually on 31st December. Give the machinery account from 2007 to 2010.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: