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urgent Needed Q. No. 5. A company purchased a second hand machine on 1st January 2014 for Rs.47,000 and immediately spent Rs.2,000 on its repairs
urgent Needed
Q. No. 5. A company purchased a second hand machine on 1st January 2014 for Rs.47,000 and immediately spent Rs.2,000 on its repairs and Rs.1,000 on its erection. On 1stJuly 2015 it purchased another machine for Rs. 20,000 and on 1st July 2016 it sold off the first machine for Rs. 38,000 and bought another for Rs.35,000. On 1st July 2017 the second machine was also sold off for Rs. 6,000. Depreciation was provided on machinery @ 10% p.a. on the original cost annually on 31st December. In 2015, however, the company changed the method of providing depreciation and adopted the written down value method, rate of depreciation being 15% p.a. Required: Give the machinery account for four years commencing from the acquisition of first machine. Compute to nearest rupeeStep by Step Solution
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