3.Mr. Shanmugavel purchased (second hand) a machine for Rs. 8,000 on 1st April, 2001. He spent Rs. 3,500 on its overhaul and installation. Depreciation is written off @ 10% p.a. on the original cost. On 30th June, 2004 the machine was found to be unsuitable and sold for Rs. 6,500. Prepare the machine account from 2001 to 2004 assuming that the accounts are closed on 31st December, every year.

Answer rating: 100% (QA)

To prepare the machine account from 2001 to 2004 well record the transactions related to the purchas... View the full answer