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Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?
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Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , anoth...
Calculation of Machinery Account after Depreciation

Initial Purchase of Machinery on 1-1-2016
- Machinery purchased on 1-1-2016 for Rs. 40,000
- Depreciation for the year 2016 = 10% of Rs. 40,000 = Rs. 4,000
- Written down value as of 1-1-2017 = Rs. 40,000 - Rs. 4,000 = Rs. 36,000

Second Machine Purchase and Repairs on 30th June
- Another machine purchased on 30th June for Rs. 15,000
- Repairs cost incurred for Rs. 5,000
- Total cost of new machine = Rs. 15,000 + Rs. 5,000 = Rs. 20,000
- Depreciation for the year 2017 = 10% of Rs. 36,000 = Rs. 3,600
- Written down value as of 30th June 2017 = Rs. 36,000 - Rs. 3,600 = Rs. 32,400

Sale of Second Machine on 30th June 2017
- Second machine sold for Rs. 15,000
- Book value of the second machine on the date of sale = Rs. 32,400
- Profit/(Loss) on the sale = Sale price - Book value = Rs. 15,000 - Rs. 32,400 = (Rs. 17,400)

Final Machinery Account after Depreciation
- Opening balance (1-1-2017) = Rs. 36,000
- Add: Purchases and repairs = Rs. 20,000 + Rs. 5,000 = Rs. 25,000
- Less: Depreciation for 2017 = Rs. 3,600
- Less: Loss on sale of second machine = Rs. 17,400
- Closing balance (30-6-2017) = Rs. 40,000 - Rs. 4,000 - Rs. 3,600 - Rs. 17,400 = Rs. 15,000
By following the above calculations, we have determined the machinery account after allowing for depreciation of 10% per annum on the written down value.
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Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?
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Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Machinery was purchased on 1-1--2016 for rs 40000.on 30th June , another second machine was purchased for rs.15000 and rs. 5000 was spent for repairs . On 30th June 2017 the second machine was sold for rs. 15000.prepare machinery account after allowing depreciation of 10% p.a. on the written down value.?.
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