13. A company whose accounting year is a financial year, purchased on 1st July, 2021 machinery costing ₹ 30,000.

It purchased further machinery on 1st January, 2022 costing ₹ 20,000 and on 1st October, 2022 costing ₹ 10,000.

On 1st April, 2023, one-third of the machinery installed on 1st July, 2021 became obsolete and was sold for ₹ 3,000.

Show how Machinery Account would appear in the books of the company. It being given that machinery was depreciated by Fixed Instalment Method at 10% p.a. What would be the value of Machinery Account on 1st April,

2024?

T.S.Grewal/2024 Edition/Practical Problems/Q-13

For full question, please refer to the text book T.S.Grewal’s Double Entry Book Keeping-Financial Accounting, Textbook for CBSE Class XI published by Sultan Chand & Sons Pvt. Ltd.

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