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Plant-machines(factory) is given in trial balance(dt- 31-3-2018) debit side and amount of it is 42000 . In adjustment,plant-machines of ₹ 2000 is sold for ₹1600 which was recorded as goods sold on 1-4-2016. Next adjustment is = on 1-10-2016 plant-machines of ₹4000 was purchased which was recorded as goods purchase. What is entire entry for all of the above?
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Plant-machines(factory) is given in trial balance(dt- 31-3-2018) debit...
Adjustment Entry for Plant-Machines
Plant-machines are recorded in the trial balance as an asset under the debit side. However, adjustments need to be made for any plant-machines that were sold or purchased but incorrectly recorded as goods sold or purchased.

Sold Plant-Machines Adjustment
- Plant-machines sold for ₹2000 were incorrectly recorded as goods sold on 1-4-2016.
- The correct entry should be to decrease plant-machines by ₹2000 and recognize a loss on the sale of ₹400 (calculated as selling price ₹1600 - cost price ₹2000).

Purchased Plant-Machines Adjustment
- Plant-machines purchased for ₹4000 were incorrectly recorded as goods purchased on 1-10-2016.
- The correct entry should be to increase plant-machines by ₹4000 and recognize the correct asset value in the balance sheet.

Entry for both Adjustments
- Debit Loss on Sale of Plant-Machines (P&L Account) ₹400
- Debit Plant-Machines (Asset) ₹4000
- Credit Plant-Machines (Asset) ₹2000
- Credit Goods Sold (P&L Account) ₹1600
- Credit Goods Purchased (Trading Account) ₹4000
By making these adjustments, the trial balance will accurately reflect the true value of plant-machines in the factory.
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Plant-machines(factory) is given in trial balance(dt- 31-3-2018) debit side and amount of it is 42000 . In adjustment,plant-machines of ₹ 2000 is sold for ₹1600 which was recorded as goods sold on 1-4-2016. Next adjustment is = on 1-10-2016 plant-machines of ₹4000 was purchased which was recorded as goods purchase. What is entire entry for all of the above?
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