26. Bharat Stores purchased on 1st July, 2020 machinery costing 30,000. It further purchased machinery on 1st January, 2021 costing 20,000 and on 1st 0ctober, 2021 costing 10,000.

On 1st April, 2022, one-third of the machinery installed on 1st July, 2020 became obsolete and was sold for 3,000. The company follows financial year as accounting year.

Show how the Machinery Account would appear in the books of company if depreciation is charged @ 10% p.a. on Written Down Value Method.

T.S.Grewal/2024 Edition/Practical Problems/Q-26

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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