On 1st April 2021, Hira Laal Ltd. purchased a Machine for Rs. 70,000 and spent Rs. 20,000 on Cartage, Repairs and Installation. The residual value at the end of its expected useful life for four years is estimated at Rs. 30,000. On 30th September 2023, this Machine is sold for Rs. 60,000. Charge Depreciation according to Straight Line Method. 

You are to: 

1. Calculate the rate of Depreciation?

2. Prepare the Machinery a/c of the company?

3. Find out Profit/Loss on Sale of Depreciated Asset by the company?

Answer rating: 100% (QA)

To calculate the rate of depreciation using the straightline method we can use the formula Rate of D... View the full answer