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6. Profit or loss on sale of assets will be transferred from asset sale account
to profit or loss account.
PROBLEMS
1. ‘A’ LTD purchase machinery for Rs. 50,000/- on 1.1.95. The company closes
its accounts on 31st December, every year. Depreciate machinery by 20 % on
W.D.V basis.
A part of the machinery costing Rs. 10,000/- was sold on 30th June, 97 for Rs.
5,000/- Show relevant accounts for 1995, 1996 and 1997.
4. On 1st April 1993 firm purchase a machinery for Rs. 2,00,000/-. On 1st
OMTEX – CLASSES
F.Y.B.Com ACCOUNTS F.Y.B.Com
DEPRECIATION
October, 1993 additional machinery of Rs. 1,00,000 was purchased. On 1st
October, 1994 machinery purchased on 1st April 1993 became obsolete and
sold for Rs. 90,000. On 1st October 1995 new machinery was purchased for
Rs. 2,50,000 and the machinery was purchased on 1st October 1993 was skid
fir Rs, 8,50,000 on the same date.
Provide Depreciation 10% on S.L.M show machinery Account,
Depreciation Account, Provision for Depreciation account and machinery sold
account. For the three years 1993,1994,1995,1996.