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5. On 1-1-2016, A purchased Roasting Machine for 60,000 and Grinding Machine for 40,000. On 1-1-2017 he purchased one Oil Expeller for 1,00,000. On 1-1-2018
5. On 1-1-2016, A purchased Roasting Machine for 60,000 and Grinding Machine for 40,000. On 1-1-2017 he purchased one Oil Expeller for 1,00,000. On 1-1-2018 the Roasting Machine got out of order and a new Roaster was purchased costing 1,20,000 after surrendering the old one and paying cash 90,000. On 1-1-2019 the Oil Expeller purchased on 1-1-2017 was destroyed by fire and the insurance company paid 60,000 only. Show the Machinery Account from 2016-2019. Charge depreciation at 10% p.a. on the W.D.V. method. Ans. [Balance 1,23,444; Loss on Exchange on the Roasting Machine 18,600 ; Loss on Oil Expeller 21,000.]
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