7. On 1st April, 2017, a firm purchased a machinery for ₹ 1,05,000. The scrap value was estimated to be ₹ 5,000 at the end of asset’s 10 years’ life. Straight Line Method of depreciation was used. The accounting year ends on 31st March every year. The machine Was sold for ₹ 6,000 on 31st March, 2024. Calculate the following:

  1. The Depreciation expense for the year ended 31st March, 2018.
  2. The net book value of the asset on 31st March, 2022.
  3. The gain or loss on sale of the machine on 31st March, 2024.

T.S.Grewal/2024 Edition/Practical Problems/Q-07

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.

Answer :

T S Grewal Solution-15-Depreciation-Sol-07-min

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