Following balances appear in the books of M/s. Amrit as on 1st April, 2017:
2017 1st April
Machinery A/c – Rs. 60,000
Provision for Depreciation A/c – Rs. 36,000
On 1st April, 2017, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2013 for Rs. 16,000.
You are required to prepare the Machinery A/c, Provision for Depreciation A/c and Machinery Disposal A/c for the year ended 31st March, 2018. Depreciation was charged at 10% on Cost following SLM.
