Question

On 01-01-2000 a firm purchases machinery amounting to Rs. 500,000 on 1-07-
2002 it buys additional machine worth Rs. 100,000 and spends Rs. 10,000 on its
erection. The accounts are closed each year on 31st December. The firm charges
annual depreciation @ 10%.
Required:
Machinery Account for 5 years under
(i) Straight line Method (ii) Reducing balance method.

Answer 1

Answer on Question #62547 - Economics - Accounting

On 01-01-2000 a firm purchases machinery amounting to Rs. 500,000 on 1-07-2002 it buys additional machine worth Rs. 100,000 and spends Rs. 10,000 on its erection. The accounts are closed each year on 31st December. The firm charges annual depreciation @ 10%.

Required:

Machinery Account for 5 years under

(i) Straight line Method (ii) Reducing balance method.

Solution

(i) Straight line Method

Machinery Account

(ii) Reducing balance method

Machinery Account

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