On 1st April 2013, Rama Co. Ltd. purchased machinery for Rs. 74,000 & spent Rs. 4,000 on its repairs & Rs. 2,000 on its installation. On 1st April, 2014 the firm purchased another machinery for Rs. 20,000. On 1st Oct. 2015 the machinery purchased on 1st April 2013 was sold for Rs. 56,000 and on the same date a new machinery was purchased for Rs. 50,000. On 1st Oct 2016 , the machinery purchased on 1st April 2014 was sold for Rs. 4,000. For the year ending 31st March, 2014 depreciation was charged @ 10% p.a. on original cost of assets. From 1st April, 2014, the company decided to write-off depreciation @ 15% p.a. on written down value method.
Prepare machinery account for 4 years . Books are closed on 31st March every year.

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To prepare the machinery account we need to list all the transactions related to machinery and calcu... View the full answer