Question

3) Sahil Bros, Kolhapur purchase a machinery on \( 1^{\text {st }} \) April 2008 for 47000 and spent Rs.3000 for its installation, on \( 1^{\text {st }} \) October 2008 , additional machinery costing Rs.5000 was purchased. On 1st July 2009 the machinery purchased on 1 st 0 ctober 2008 was sold for \( 3000 /- \) and on the same date, new machinery was purchased for Rs. \( 12000 /-. \) They decided to provide for depreciation@10\% p.a under straight line method and WDV method on \( 31^{\text {st }} \) march every year. Prepare machinery account for 3 years only.

Answer 1

Sahil Bros. Kolhapur, Purchased a machinery on 1 st April 2008 for < 47,000 ans spent 33,000

for its installation. On 1st October 2008 Additional machinery costing ™ 5,000 was purchased.

On 1st July 2009 the machinery purchased. On 1st October 2008 was sold for 3,000 and on

the same date new machinery was purchased for ‹ 12,000.

They decided to provide to depreciation @ 12% p.a. under Straight Line Method on 31 st

March every year.

Prepare Machinery Account an Depreciation Account for 3 year only.