Accountancy

Question

Akshat enterprises purchased on 1st April 2014, a machine for 7,28,000 and spent Rs 22,000 on its installation. It purchased another machinery for Rs 2,50,000 on 1st October 2014. On 1st October 2016, the first machine sold for 4,50,000. It purchased another machinery on the same date for Rs 6,00,000. Depreciation was provided annually on 31st March at 10% p.a. on the written down value. On 1st April 2017, the firm decided to change the method of charging depreciation and adopted the method of providing depreciation @ 10% p.a. on the straight line basis as per AS- 10 (Revised), Property, Plant and Equipment. Prepare machinery account from 1st April 2014 to 31st March 2018.

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