Questions; On 1st July 1990, a company purchased a machine for rupees 20000. After that, on 1st January 1991, the second machine was purchased for rupees 12000. On 1st April 1992, the first machine which was purchased on 1st July 1990 was sold for rupees 16500 and a new machine was purchased on the same day for rupees 10000. Prepare Machinery Account

for three years after providing depreciation by Reducing Balance Method at 10 percent per annum.

Solution:

Q1 Depreciation Practical Questions and Answers Image
Q1. Depreciation Practical Questions and Answers.

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  Diminishing or Reducing Balance Method of Depreciation